Iran war: Bottlenecks in global freight transport

Since the military escalation in the Middle East has been intensifying, a. hartrodt's sea and air freight teams have been working in crisis mode for customers worldwide. This is because the war in Iran is not only affecting regional transportation, but also having an impact on global freight transport. “In sea freight, even without a direct connection to the Middle East, there are longer transit times and equipment bottlenecks,” says Nuno da Silva, General Manager Sea Freight Germany at a. hartrodt. According to him, the current developments on the important Asia-Europe trade lane could lead to changes in transit times that are difficult to predict, as well as possible additional congestion at ports and terminals.

Air freight shipments remain on hold at short notice

Air freight is also experiencing capacity bottlenecks due to closed Gulf hubs. Hubs connecting Asia, Europe and Africa handle around 21 per cent of the world's air freight tonnage. In the United Arab Emirates, Dubai World Central, Dubai International Airport, and Abu Dhabi International Airport are affected, along with Hamad International Airport in Qatar. “This is causing backlogs for airlines, and numerous shipments cannot be reloaded as planned, but are rebooked or, in some cases, retrieved,” says Stefan Goestl, General Manager Air Freight Germany at a. hartrodt.

Carriers charge high additional costs 

Liner services are currently increasingly avoiding the largest sea freight hub of the Persian Gulf in Jebel Ali. The port of Dubai is only accessible via the Strait of Hormuz, which many carriers currently consider too risky – as well as the Bab el-Mandab Strait between the Gulf of Aden and the Red Sea. “Far East-Europe services will not return to the Red Sea for the time being,” says Nuno da Silva. For shippers, this means limited predictability in supply chains and continued volatile rates. He also warns: “If vessels are unloaded prematurely at alternative ports for safety reasons, carriers often charge additional costs for transshipment and onward transport.” The a. hartrodt team is always available to work closely with customers to find solutions and alternative options.

According to Stefan Goestl, the situation for air freight also “remains volatile”. In addition to the established air freight corridors between Asia and Europe, the effects are also extending to traffic flows between Europe and the Indian subcontinent, Southeast Asia, Northeast Asia, and Oceania. Several Middle Eastern airlines have canceled special agreements in order to resume flights at higher rates. In response, other airlines are introducing higher security and fuel surcharges. In order to continue to enable maximum flexibility, Stefan Goestl's team provides express services as well as charter capacities that can be organized at short notice. He advises customers to “coordinate with us at an early stage”.