The situation in the Middle East continues to affect global shipping and air freight services, with elevated oil prices maintaining pressure on fuel costs and related surcharges.
Sea Freight Service Update
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, while UK hauliers have also increased their fuel surcharge again this week, as previously advised to customers. Both remain under weekly review and may be adjusted further in line with market conditions.
For PFE customers, the impact on service remains minimal at present. The Asia and Indian Subcontinent trade lanes we use into the UK and Europe are continuing to operate normally and are not currently dependent on the main Gulf ports where disruption remains most acute.
There is, however, some ongoing risk to schedule reliability. If vessels are required to bunker at alternative ports, sailings could slip off schedule, and transit times may also be affected if carriers choose to slow steam in response to higher operating costs. At this stage, though, we are not seeing evidence of either issue materially affecting our core services.
There is currently little port congestion to report, although this is something that could develop if pressure on global networks increases.
Air Freight Service Update
Air freight services continue to face disruption as airspace restrictions remain in place across parts of the Middle East, although major carriers are still moving flights and operations have not deteriorated further from last week’s position.
Space remains extremely tight, with ongoing delays both at departure and in transit as cargo continues to compete for reduced capacity. Some deferred services are still experiencing hold-ups, and shipments may continue to face extended journey times as networks work through the backlog.
Fuel surcharges have increased further again this week, pushing overall air freight rates to very high levels. Volumes arriving into Heathrow and Stansted remain below normal levels, and the combination of limited capacity and rising operating costs continues to place significant upward pressure on pricing.
We will continue to keep affected customers informed of any changes to specific shipments.
Should you have any questions or concerns about your shipment, please get in touch with our Customer Service Team on 01376 533039 or email [email protected].
For Air Freight queries contact 01753 278020.
