Update 7
Dear Valuable Customer,
Freight Systems is actively monitoring the evolving situation across the Middle East. Based on the latest updates from global carriers, freight forwarders, port operators, and aviation authorities, logistics flows across the UAE and Upper Gulf continue to face significant disruption. The situation remains highly dynamic, with ongoing changes across ocean freight, air freight, port operations, and inland connectivity.
A key recent development is the emergence of a global jet fuel supply disruption, introducing an additional layer of risk to air freight capacity and overall supply chain reliability. This is expected to progressively impact operations if conditions do not stabilize, with implications now extending beyond the region into global trade lanes.
- Critical Operational Update – UAE Gateways
| Parameter | Current Status |
| Khor Fakkan Port | Operations remain disrupted |
| Contingency Routing | Not available |
| Feeder / Transshipment | Impacted |
| Documentation | Strict screening requirements in place |
Market Reality
| Factor | Status |
| Upper Gulf Direct Calls | Avoided by major carriers |
| UAE Gateway Dependence | Indirect routing via regional hubs |
| Vessel Frequency | Reduced |
- Ocean Freight – Market Situation
Booking & Cargo Acceptance
| Category | Status | |
| UAE, KSA, Kuwait, Qatar, Bahrain, Iraq | Widespread booking restrictions | |
| Booking Acceptance | Case-by-case basis | |
Carrier Positioning
| Carrier Group | Strategy |
| Maersk / MSC / Global Lines | Security-driven routing decisions |
| Strait of Hormuz | Avoided where possible |
| Alternative Routing | Red Sea & regional hubs |
Cargo Acceptance Matrix
| Cargo Type | Status |
| Standard Containers | Routed via Oman & Red Sea hubs |
| RORO | Via Oman & Jeddah (operational feasibility) |
| Reefer / Essential Cargo | Prioritized |
| DG / OOG | Heavily restricted/suspended |
| Food & Medical | Prioritized |
Commercial Conditions
| Factor | Status |
| War Risk Surcharge | Active |
| Emergency Freight Surcharge | Applicable |
| Rate Validity | Short window (high volatility) |
- Jet Fuel Crisis & Air Freight Impact
Current Situation
| Parameter | Details |
| Fuel Supply | Severe disruption from Middle East exports |
| Europe Exposure | High risk of shortages |
| Jet Fuel Price | ~USD 179 per barrel |
Industry Signals
| Indicator | Status |
| Airline Capacity | Expected reductions (Europe & Asia first) |
| Flight Operations | Cancellations in select markets |
| Fuel Surcharge | Increasing across carriers |
Operational Impact
| Factor | Impact |
| Air Freight Rates | Elevated and volatile |
| Capacity | Tightening expected |
| Cargo Priority | High-yield/critical cargo |
- Air Freight – Operational Update
| Parameter | Status |
| Capacity | Constrained and volatile |
| Routing | Adjusted due to airspace & fuel limitations |
| Network Reliability | Impacted |
Cost Structure Changes
| Cost Element | Description |
| Fuel Surcharge (FSC) | Weekly adjustments |
| Transit Disruption Surcharge (TDS) | Applicable |
| Additional Costs | Fuel-driven escalation expected |
- Alternative Routing & Green Corridor Solutions
Primary Corridors
| Corridor | Details | Status |
| Saudi Corridor | Jeddah & King Abdullah Port → Landbridge to UAE, Bahrain, Kuwait, Qatar | Most stable & scalable |
| Oman Corridor | Sohar (active), Salalah (limited) → GCC trucking | Expanding |
| UAE Alternatives | Fujairah (carrier dependent) | Limited availability |
*Note: Multimodal and land-bridge solutions are now core supply chain strategies, not contingency options.
- Ports & Regional Network Impact
| Factor | Status |
| Feeder Services | Introduced (Jebel Ali – Dammam – King Abdullah Port) |
| Vessel Traffic | Reduced |
| Red Sea Gateways | Increased utilization (Jeddah / Sokhna) |
- Commercial & Operational Impact
| Area | Impact |
| Transit Time | Longer and unpredictable |
| Booking Confirmation | Subject to carrier approval |
Freight Cost Impact
| Cost Component | Status |
| Emergency Freight Surcharge | Applicable (Ocean) |
| War Risk & Insurance | Adjusted |
| Fuel Surcharge | Increased (Air & Land) |
Pricing Model
| Parameter | Details |
| Pricing Type | Spot / short validity |
| Rate Validity | 24–72 hours |
- Cargo in Transit & Contingency Measures
Current Handling
| Scenario | Action |
| In-transit Cargo | Stored at intermediate hubs |
| Routing | Diverted to alternative ports |
Available Options
| Option | Description |
| Continue Voyage | With storage |
| Change Destination | Possible |
| Return to Origin | Possible |
*Note: Storage charges may apply after approximately 14 days of a free period.
- Landside & Multimodal Expansion
| Route | Status |
| Jeddah → GCC | Expanded land-bridge |
| Sohar / Salalah → GCC | Increasing utilization |
| UAE Inland Distribution | Multimodal expansion |
- Empty Container & Equipment Constraints
| Parameter | Status |
| Return Depots | Disrupted |
| Designated Locations | Jeddah (KSA), Salalah (Oman) |
| Additional Charges | Possible |
| Equipment Repositioning | Challenging |
- Demurrage & Detention Support Measures
Freight Systems is actively engaging with carriers to support customers through flexible demurrage and detention arrangements, including requests for extended free time wherever possible. Given the ongoing disruptions, customers are strongly advised to proactively submit extension requests for POD changes, routing disruptions, or transit delays. All such requests remain subject to carrier approval, and early coordination is recommended to avoid additional charges.
- Global Supply Chain Impact
| Region / Factor | Impact |
| Global Network | Disruptions extending beyond the Middle East |
| Europe–Asia Trade | Highest pressure expected |
| Alternative Hubs | Increasing congestion |
| Modal Shift | Ocean to air adding strain |
Freight Systems Contingency Framework
Freight Systems continues to support customers through:
- Deployment of green corridor solutions (KSA & Oman)
- Flexible multimodal routing based on cargo priority
- Close coordination with carriers and partners
- Continuous monitoring of operations and schedules
- Proactive shipment updates and advisory support
Customer Recommendations
We strongly advise customers to:
- Plan shipments well in advance
- Confirm routing and pricing before cargo readiness
- Allow additional transit buffer
- Remain flexible on routing and gateway options
- Maintain close coordination with Freight Systems teams
We extend our sincere wishes for your safety and well-being, and that of your family, during this time.
Regards,
Team Freight Systems
