The situation in the Middle East is changing rapidly, and we know many of our clients are concerned about how this might affect their freight operations. As your logistics partner, we want to keep you informed about what’s happening on the ground and how we’re working to protect your supply chains.
Understanding the current environment
Commercial shipping through the Strait of Hormuz and Bab el-Mandeb now requires military escort, a significant shift that’s forcing carriers to reconsider traditional routing. The impact extends far beyond these waterways, creating a ripple effect across the entire Gulf region.
Recent developments have been particularly challenging:
Port congestion is reaching critical levels:
Khor Fakkan is approaching capacity thresholds that will force discharge restrictions. We’ve already identified Jeddah as a primary contingency option given the deteriorating situation at alternative ports.
Salalah has been compromised:
A missile strike has affected port operations, removing what was previously our main alternative routing option. This has pushed Jeddah to the forefront of our contingency planning.
Doha operations remain suspended:
Ocean cargo destined for Qatar is currently discharged at Sohar, where storage charges are accumulating daily whilst we work through alternative delivery solutions with affected clients.
Customs procedures are in flux:
Officials in Oman and Sohar lack clear guidance on transit handling, creating multi-day delays across all resolution pathways.
Real-time challenges affecting operations
Beyond the headline issues, we’re managing several operational constraints that directly impact delivery timelines and costs:
- Qatar Airways hasn’t published a reliable schedule for operational recovery, meaning we’re planning extended alternate routing for air freight.
- Digital tracking systems from carriers have become unreliable. We’re maintaining direct communication with our network of agents to provide accurate cargo status updates.
- Trucking capacity across Oman and Saudi corridors is extremely tight, compressing the window for resolving stranded and in-transit cargo issues.
- Financial pressures are mounting. War-risk insurance premiums are rising, and Letter of Credit issuance timelines have extended. We’ve activated backup payment channels to keep transactions moving.
What we’re monitoring daily
Our team is tracking multiple indicators to stay ahead of developments:
- Port recovery timelines: Particularly Salalah’s operational status and Khor Fakkan’s discharge capacity
- Military escort protocols: US posture in the Strait of Hormuz and carrier authorisation for passage
- Qatar Airways service restoration: Critical for normalising freight flows through Doha
- Saudi customs capacity: As Riyadh and Jeddah absorb redistributed GCC cargo under Ramadan staffing constraints
- Insurance premium trajectories: War-risk costs directly impact routing decisions and client surcharge exposure
- Banking system continuity: SWIFT delays, correspondent bank scrutiny, and payment channel constraints
- Carrier surcharges: War Risk Assessments and additional notifications that affect your bottom line
Financial implications
We’re seeing significant cost increases across multiple areas: fuel, freight rates, Port Security Surcharges, Emergency Bunker Surcharges, insurance, and container repositioning. Most carriers have already issued War Risk Assessments, and we’re monitoring for further surcharge notifications that could affect your shipments.
How we’re responding
Grace Overseas has been in this industry for over 40 years. We’ve navigated regional conflicts, global disruptions, and supply chain crises before. Our approach remains consistent: proactive planning, direct communication, and utilising our global network to find solutions.
We’re taking multiple proactive approaches:
- Maintaining constant contact with our agents across affected regions
- Evaluating alternative routes before they become necessary
- Keeping our clients informed with accurate, timely information rather than relying on automated systems
What this means for your business
If you have shipments moving through or destined for the Gulf region, expect:
- Possible delays beyond normal transit times
- Potential cost increases due to rerouting and surcharges
- The need for flexible planning around delivery schedules
We’re here to help you navigate these challenges. Our team is monitoring the situation around the clock and will reach out proactively if your specific shipments are affected.
For urgent queries or concerns about cargo currently in transit, please contact our team directly. We’re committed to keeping your supply chain moving, even when the global situation becomes unpredictable.
