MIDDLE EAST CONFLICT - Impacts on Air Cargo and Containerised Trade

Emirates (Dubai)

• Emirates has temporarily suspended all operations to and from Dubai due to multiple regional         airspace closures.
• Dubai International Airport         sustained damage during Iranian strikes.
• Emirates has advised that         services will resume only when conditions permit safe operations and that further updates will be issued.

Qatar Airways (Doha)

• Qatar Airways has suspended all flights to and from Doha following the closure of Qatari airspace.
• The airline has stated that operations will resume only once the Qatar Civil Aviation Authority confirms the safe reopening of airspace.
• Qatar Airways has advised that a further update will be provided, noting that schedules may change at short notice.

Etihad Airways (Abu Dhabi)

• Etihad has cancelled all flights to and from Abu Dhabi, advising customers that the situation remains dynamic.
• The airline has confirmed that additional updates will be issued as conditions evolve.

Qantas Freight

Qantas Freight does not operate scheduled freighter services to and from the Middle East. We are closely monitoring the evolving situation, and there is currently no impact to Qantas operated flights. Any schedule impacts to our passenger network, including Europe, are being communicated by the group. The safety of our crew and customers is our top priority.

Other international carriers

• Multiple global airlines have cancelled or rerouted services due to the loss of safe overflight corridors.
• Cathay Pacific has confirmed suspensions affecting both passenger services and freighter operations at Dubai’s Al Maktoum airport, directly reducing global air cargo capacity.

Air Cargo Implications

The Gulf is a major global air cargo interchange, and the shutdown of Dubai, Doha and Abu Dhabi has significantly reduced available uplift.

• Airlines are facing longer routings, higher fuel burn and increased operating costs, placing upward pressure on air freight rates.

Even after airspace reopens, network recovery is expected to be staged, due to aircraft and crew dislocation.

SEA FREIGHT – CONTAINERISED SHIPPING DISRUPTION

The conflict has escalated security risks to maritime traffic across key Middle East chokepoints, particularly the Strait of Hormuz and Red Sea.

Major container shipping lines have implemented emergency security and operational measures.

Carrier updates

MSC Mediterranean Shipping Company (MSC)

• MSC has instructed all vessels currently operating in the Gulf region, as well as those en route, to proceed to designated safe shelter areas.
• MSC has temporarily suspended all bookings for worldwide cargo to the Middle East region until further notice.
• MSC has advised customers that further details will be provided as the situation evolves, including any potential alternative discharge ports.

CMA CGM

• CMA CGM has instructed all vessels inside the Gulf, and those bound for the Gulf, to proceed immediately to shelter.
• Passage through the Suez Canal has been suspended, with vessels rerouted via the Cape of Good Hope.
• In continued efforts to ensure the safety of our crew, vessels, and your cargo amid the ongoing developments in Iran and across the Arabian Peninsula, precautionary measures have been taken to safeguard operations in the affected areas. We understand these measures may impact your logistics and supply chain operations; however, they are necessary steps that also lead to additional operational costs.
• We hereby inform you that, effective March 2nd and until further notice, an Emergency Conflict Surcharge (ECS) will apply as follows:

Emergency Conflict Surcharge details: USD 2,000 per 20’ Dry Container | USD 3,000 per 40’ Dry Container | USD 4,000 per Reefer or Special Equipment

Scope: From or to Iraq, Bahrain, Kuwait, Yemen, Qatar, Oman, United Arab Emirates, Kingdom of Saudi Arabia, Jordan, Egypt / Port of Ain Sokhna, Djibouti, Sudan, Eritrea.

This surcharge applies to any booking issued on or after March 2nd, 2026, cargo not yet shipped, as well as cargo already afloat, originating from/ bound for the countries mentioned above. Please note that for specific origins, this surcharge may be included in the freight rate.

Hapag‑Lloyd

• Hapag‑Lloyd has officially suspended all vessel transits through the Strait of Hormuz.
• The carrier has warned shippers to expect delays, reroutings and schedule adjustments.
• A War Risk Surcharge (WRS) for cargo to and from the Upper Gulf, Arabian Gulf, and Persian Gulf will be introduced. The dynamic situation around the Strait of Hormuz and the necessary operational adjustments are causing disruptions throughout the network, which will impact schedules and equipment supply. Therefore, a War Risk Surcharge (WRS) will take effect for cargo to and from the Upper Gulf, Persian and Arabian Gulf. The WRS will be effective from March 2, 2026, until further notice.

The details of this WRS are listed below and are applicable with immediate effect (excluding cargo that falls under FMC or SSE regulated scopes):

• USD 1,500 per TEU for standard containers

• USD 3,500 per container for reefer containers and special equipment

The charge is to be borne by the booking party. This surcharge applies to any booking issued on or after March 2, 2026, that has not yet shipped, as well as to cargo already on the water but not yet discharged or loaded to/from the Upper Gulf, Persian Gulf and Arabian Gulf.

Maersk

• Maersk has advised that services including MECL and ME11 are now being redirected around Africa, rather than transiting the Suez Canal.

IMPACTS FOR AUSTRALIAN SUPPLY CHAINS

Australia is not immune to the impacts of this disruption.

• Air freight: Reduced global capacity and network disruption are expected to affect air cargo into  and out of Australia, particularly for time‑critical and high‑value goods.
• Sea freight: Extended routings, port congestion and equipment imbalances may affect transit times and schedule reliability for Australian importers and exporters.

Costs: Rising fuel prices, war risk surcharges and emergency conflict surcharges  are expected to place upward  pressure on freight rates, even for cargo not directly moving  to the Middle East.

We will continue to monitor the situation closely and will update clients on the operational impacts on their shipments. For those with orders under CFR or CIF terms, we recommend you speak to your suppliers as to the impacts and extra costs for your shipments.