Middle East supply chain situation

While we are experiencing severe disruptions in the flow of goods, DSV remains able to operate under some constraints, utilising our broad network and partners throughout the region finding alternative routes to keep supply chains running.

Air freight impact

Gulf carriers have gradually begun operating limited freighter services as authorities approve select repositioning, cargo, and repatriation flights. International carriers have suspended services to Israel, while national carriers still offer limited services. Overall air freight capacity remains very limited. The impact is now spreading across multiple trade lanes, particularly as cargo from Southeast Asia, the Indian Subcontinent, and Oceania is being routed via China and Hong Kong. This shift is increasing pressure on corridors that were less affected earlier in the week, further tightening already constrained capacity and contributing to ongoing disruptions across the global air freight network.

As the situation remains uncertain, further adjustments to flight schedules and network coverage may occur at short notice.

Customers should anticipate potential delays or even cancellations, space constraints, and short-notice rate adjustments in the coming days and weeks.

Global air freight implications

The current disruption is expected to have broader implications beyond the Middle East region:

• Reduced Global Capacity: Aircraft redeployments, route extensions, and service suspensions are tightening available capacity across key trade lanes.
• Far East & Europe Trade Lanes: Capacity constraints are anticipated particularly on Far East–Europe and Asia–Middle East corridors.
• Rate Volatility: We expect upward pressure on air freight rates due to capacity limitations.
• War Risk Surcharges: Airlines are introducing or reviewing introduction of war risk surcharges applicable to shipments routed through or near affected regions.
• Jet Fuel Costs: Rising geopolitical tensions may impact global oil markets, potentially leading to increases in jet fuel prices and subsequent fuel surcharges.

Sea freight impact

Shipping lines have started to accept dangerous goods shipments to the Saudi Red Sea.

Following the recent announcement from Protection & Indemnity (P&I) Clubs regarding the cancellation of war risk coverage effective 5 March at midnight, most shipping lines have decided to stop accepting new bookings to and from the Middle East.

The updated exclusion zone now covers all waters west of the Cape al-Ḥadd line, including the entire Gulf of Oman. As a result, without war risk coverage, shipping lines are unable to operate safely within these waters and will not approach affected areas.

At this stage, Jeddah and King Abdullah Port (Saudi Arabia) are not included in the exclusion zone. Salalah port has now reopened and is operating at limited capacity.

Several shipping lines have therefore suspended services to the Arabian Gulf. This suspension also applies to empty containers that have already been released for stuffing and are intended for export from the Arabian Gulf.

All shipments currently en route to the Arabian Gulf will be diverted to the next safe port of discharge. At that port, cargo will be discharged and placed at the customer’s disposal for local delivery or recovery.

DSV will coordinate the next steps with affected customers. Customers will be asked to provide instructions for the onward handling of their cargo. The following options are currently available:

Cargo can be delivered at the diversion port where the Bill of Lading will be completed. Equipment must be returned at the same port of discharge.

Cargo can be transported onward to a designated location, subject to agreement on pricing and capacity availability.

Cargo may be rerouted to an alternative port of your choice, subject to agreement on pricing, service availability, and operational feasibility given the current situation.

DSV continues to monitor developments closely and remains in close dialogue with our carrier partners to support customers and minimise disruption wherever possible. 

Road freight impact

Road freight operations across the region continue, with services largely maintained at this stage. However, customers should anticipate potential border congestion, customs processing delays, and transit time variability as conditions evolve. Increased reliance on alternative routing and heightened security controls may lead to temporary schedule adjustments and cost fluctuations. The situation remains dynamic and is being monitored closely to ensure rapid response and controlled execution.

Contract Logistics impact

Contract Logistics facilities across the Gulf region remain operational, with business continuity measures actively in place. Warehousing and distribution activities continue, however, with some suspensions, and some irregularity in inbound and outbound flows may occur. Contingency planning, workforce coordination, and transport flexibility have been reinforced to support critical supply chains. We remain focused on maintaining operational resilience and service continuity as the situation develops.

DSV response and contingency planning

We have activated contingency planning measures to:

• Safeguard secured capacity allocations where possible.
• Diversify carrier options across alternative gateways.
• Protect service continuity on critical Far East trade lanes.
• Support Middle East shipments via flexible routing solutions.
• Provide proactive communication on rate and surcharge developments.

Our global teams are working continuously to mitigate disruptions and deliver tailored solutions based on shipment urgency and cargo profile.

Recommended customer actions

To help you navigate the current disruption and maintain supply chain continuity we recommend the following actions:

• Share updated shipment forecasts to support capacity planning.
• Confirm bookings as early as possible to secure space.
• Cargo owners should double check with their insurance partners on any restrictions or limitations for the region.
• Consider flexible routing and transit time alternatives where feasible.
• Vessels diverting to alternative ports may face congestion. Please consider these effects in your safety stock assessment.
• Engage with your local DSV representative for shipment-specific guidance.

We will continue to issue updates as the situation evolves. For further information or support regarding your shipments, please contact your local DSV representative.