Iran Conflict Escalates, Global Supply Chains Disrupted

Renewed military escalation between Iran, the United States, and Israel is now directly impacting global supply chains.

Multiple ocean and air freight carriers have suspended Middle East-related services. If tensions persist, businesses should expect longer transit times, tighter capacity, higher freight rates, and continued volatility across both modes.

Ocean Freight: Supply Chain Rerouting and Surcharges

CMA CGM, the world’s third-largest container carrier, has suspended Suez Canal transits until further notice and rerouted vessels around the Cape of Good Hope. The company has also halted bookings for dangerous goods and reefer cargo to several Middle Eastern destinations and imposed an emergency surcharge of $2,000 per TEU and $3,000 per FEU.

MSC has suspended all global bookings bound for the Middle East.

Hapag-Lloyd introduced a war risk surcharge of $1,500 per TEU for standard containers and $3,500 per unit for reefers and special equipment on cargo from Gulf regions.

Maersk has paused sailings through the Bab el-Mandeb Strait and is rerouting vessels around southern Africa.

Red Sea Supply Chain Recovery Delayed

Since late 2023, attacks on commercial vessels have diverted roughly 2.5 million TEU of capacity away from the Suez route. A broad return to Red Sea transits had been expected to further soften freight rates. That timeline now appears uncertain.

Air Freight Supply Chain: Flight Suspensions

Airspace closures across parts of the Middle East have also disrupted cargo operations.

FedEx has suspended services to multiple regional markets, warning of wider delays. Emirates SkyCargo and Qatar Airways Cargo have also halted certain flights due to airspace restrictions.

What Shippers Should Expect

In the near term, delays, cancellations, capacity constraints, and rate adjustments remain likely. Early booking, inventory reassessment, and contingency routing are increasingly necessary.