The conflict in the Middle East continues to affect global shipping and air freight services, with ongoing uncertainty in the region placing pressure on fuel costs, related surcharges and wider market conditions.
Sea Freight Service Update
Uncertainty remains around talks linked to the ceasefire between the US and Iran, and normal vessel transit through the Strait of Hormuz has not yet resumed. This is continuing to keep pressure on oil prices, meaning the main impact on sea freight remains cost-related rather than operational, with higher fuel costs and surcharges still feeding through across the sector.
Demand for shipments from Asia appears to be increasing overall, while Carriers have introduced some additional blank sailings. Together, this is starting to reduce available space and place more upward pressure on rates on Asia-Europe services.
At the same time, fuel-related costs remain high. Emergency fuel surcharges introduced by shipping lines remain in place and continue to be reviewed weekly. Oil prices continue to keep bunker levels elevated, and inland and feeder costs are also feeling the impact. 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 upward pressure.
From an operational point of view, services are still moving, but the combination of stronger demand, reduced capacity on some sailings and continued fuel cost pressure means the market is becoming more challenging. Arrivals are continuing to hold up well and we are not seeing any notable port congestion at present, but we are monitoring the position closely and will continue to keep customers updated as conditions develop.
Air Freight Service Update
Air freight services remain under pressure, but there are some early signs of improvement this week. Flights and rates are beginning to stabilise slightly, and we are not seeing as many delays in transit as in previous weeks.
That said, available space remains tight and fuel surcharges are still extremely high. While conditions have improved a little, the combination of restricted schedules, limited capacity and elevated operating costs continues to keep upward pressure on pricing.
If you have any questions or concerns regarding your shipment, please don’t hesitate to contact our Customer Service Team on 01376 533039 or email [email protected]. For Air Freight queries contact 01753 278020.
