The situation in the Middle East continues to affect global shipping, with oil prices remaining high and maintaining pressure on fuel costs and related surcharges. Overall, services remain stable, but wider disruption risks remain.
Ceasefire Announced
Since our last update, a ceasefire between the US and Iran has been welcomed by the shipping industry. However, carriers remain cautious, and further clarity, along with clear assurances over safety, is still needed before vessels resume transit through the Strait of Hormuz. For now, no changes are being made to specific services, with the safety of crews, vessels and cargo continuing to take priority.
For PFE customers, the wider disruption in the Middle East continues to have limited direct impact on service at present. The Asia and Indian Subcontinent trade lanes we use into the UK and Europe continue to operate normally and are not currently dependent on the main Gulf ports, where disruption remains most acute.
Surcharges Remain in Place
The situation in the Middle East continues to place pressure on oil prices, with the impact still feeding through into shipping fuel costs. The emergency fuel surcharge introduced by shipping lines remains in place and continues to be reviewed weekly. In some cases, vessels are having to refuel at alternative ports, which comes at a higher cost. Where vessels then need to increase speed to maintain schedules, this can create further cost pressure. As previously advised to customers, UK hauliers have also maintained higher fuel surcharge levels following their latest review.
Operations Largely Stable
In the main, services are continuing to operate well. However, there is still some ongoing risk to schedule reliability. Where vessels need to bunker at alternative ports, there is some risk of schedules being affected, and there have also been some delays from Indian Subcontinent ports transhipping via Oman, where operations are moving more slowly. Elsewhere, port congestion remains minimal for now, although this is something we will continue to monitor over the coming weeks. While arrivals are currently holding up reasonably well, we are still only around a month into the disruption, so any wider knock-on effects may take longer to emerge.
If you have any questions or concerns regarding your shipment, please don’t hesitate to contact our Customer Service Team at 01376 533039 or email [email protected].
