URGENT UPDATE REGIONAL DISRUPTIONS 05 – IMPACTING MIDDLE EAST SHIPMENTS

Dear Valued Partner, Valued Customer and overal Valued Friend,

We are closely monitoring the rapidly evolving situation in the Middle East and would like to provide you with an update on how these developments may impact your shipments and our service capabilities in the region. The reality on the ground is extremely challenging. Our colleagues in the UAE are receiving multiple daily warnings regarding incoming ballistic missiles and drones, and we take this situation with the utmost seriousness as it directly affects their safety and well‑being. Despite these unprecedented circumstances, the governments of the UAE and the wider Gulf region are doing a tremendous job managing the security environment and ensuring continuity where possible. We remain committed to safeguarding our people, protecting your cargo, and maintaining operational stability as conditions allow.

Please note that the following information is subject to change due to the highly volatile situation in the region.

Market & Situation Overview

The regional crisis continues to escalate, and carriers have issued several critical updates:

Approximately 2 million TEU are currently impacted across all carriers, including both cargo already loaded and cargo booked (but not yet loaded) over the next 90 days.
An oil tanker was attacked while at anchor off Kuwait, reportedly by a small craft. The explosion caused damage to a ballast tank.
Maersk has adjusted its Emergency Contingency Surcharges for Middle East cargo, including Omani ports and Red Sea ports.
- Effective 6 March, surcharge levels range USD 3,000–4,500 per 40′, depending on trade.
- FMC‑regulated trades will observe a 30‑day notice period.
Hapag‑Lloyd has announced a GRI of USD 1,000 per container on exports from India, Pakistan and the Middle East to North America.
For unloaded exports, Hapag‑Lloyd confirms:
- Bookings where empty containers have not yet been picked up will be cancelled.
- Containers already gated in at terminals should be collected again by shippers, as loading has been suspended.
Global VLSFO bunker fuel prices have increased by USD 95/ton, now reaching USD 671/ton.
Global Feeder Shipping (Abu Dhabi Ports Group) has aborted an attempted transit after earlier incidents involving SSL Leo and Safeen Prestige. AIS tracks show SSF Valence approaching and turning back.
Today marks Day 837 of the Red Sea crisis and Day 6 of the Strait of Hormuz crisis.

Scope Guidance for New Rate Applications

The below applies as communicated by carriers:

Carriers are advising new fuel rates, new GRI(General Rate Increase), new WRS(War Risk Surcharges) and new contingency surcharges
Those rates are effective immediately including floating cargo.

Operational Updates

Ocean Update

Following updated risk assessments and operational reviews, the following measures are now in effect:

Booking Suspensions – By Cargo Type

Cargo Type	Status	Notes
Reefer	All bookings suspended to/from UAE, Oman, Iraq, Kuwait, Jordan, Qatar, Bahrain, Saudi Arabia	Applies to origin/destination/transshipment. Exception: Salalah transshipment between non‑Upper Gulf routes (e.g., Seychelles → Turkey).
Dangerous Goods (DG)	All bookings suspended to/from UAE, Oman, Iraq, Kuwait, Qatar, Bahrain, Jordan, Saudi Arabia	Suspension to Israel applies only to specific UN numbers (see DG table). Same exception for Salalah transshipment as above.
OOG / In‑Gauge	All bookings suspended to/from UAE, Oman, Iraq, Kuwait, Qatar, Bahrain, Jordan, Saudi Arabia	Same exception for Salalah transshipment.
Dry Cargo	Suspended to/from UAE, Iraq, Kuwait, Qatar, Saudi Arabia (Dammam & Jubail), Oman (Sohar), Bahrain	Essential goods (food, medicine, perishables) will receive prioritised handling.

Existing Ocean Bookings & Cargo in Transit

Emergency Freight Implementation
Majority of the carriers have declared end of voyage
Due to the need for alternative routings and temporary storage solutions, an Emergency Freight Rate applies to cargo loading from or destined to: Iraq, Kuwait, Saudi Arabia (Dammam & Jubail), Bahrain, Qatar, UAE, Oman (except Salalah)

Please note that the Carriers have implemented the following surcharges, this is to advise the bandwiths. Please check with your local representative what charges are applicable to your shipment.

Container Type	Emergency Rate – Bandwith
20′ Dry	USD 800 – 1600
40′ Dry	USD 1600 – 3800
Reefer, Special, DG	USD 3500 – 4200

Options for Cargo Already on Route

Option	Cost	Notes
Complete planned voyage with temporary storage	Emergency Fee + Original Freight + Storage + additional freight(VATOS)	Carrier selects port. Final delivery initiated once safe.
Return to Origin	Emergency Fee + COD fee + original freight + COD freight	Subject to operational approval.
Change of Destination (COD)	Emergency Fee + COD fee + original freight + COD freight	Subject to operational approval.

Booking Cancellations

Bookings to/from affected countries with containers not yet gated‑out will be cancelled.
Exceptions apply for essential goods.
Suspensions apply to origin/destination/transshipment unless moving via Salalah as a non‑Upper Gulf corridor.

Cargo Booked but Not Yet Stuffed

Customers are encouraged to explore: Alternative gateways or Adjusted routings
Inland/cross‑border solutions outside impacted zones

Air Update

Airspace in UAE, Qatar, Bahrain, Kuwait, Iraq, and Iran remains temporarily suspended or restricted.
Airlines are cancelling or rerouting flights
Lower capacity
Higher rates
Extended transit times
Sea–Air volumes may encounter additional delays.
Local airport operations may experience slowdowns due to staff shortages and restrictions.

Landside Update

Landside operations remain active, including trucking, rail, and warehousing
Border congestion
Customs delays
Variable transit times
Routing and cost adjustments due to security measures

We Remain at Your Service! We understand the level of disruption this situation creates and are committed to supporting you with alternatives wherever operationally feasible. Our teams are monitoring developments closely and will continue to communicate updates as new information becomes available.

Should you require any guidance regarding rerouting, storage, CODs, or operational planning, please contact your representative.

Kind regards, Mit freundlichen Grüßen, Bien à vous, تحيات حارة,