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Mar 5, 2026 at 11:34 AM
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The current geopolitical tensions in the Middle East have significant impacts on logistics and international trade. According to an analysis by Freightos, which refers to developments since the US-Israel attacks on Iran, air and sea freight prices have risen in recent days, while logistical disruptions in the region are increasing.
Sea freight prices, measured by the Freightos Baltic Index, remained stable for routes from Asia to the West and East Coast of the USA. In contrast, prices for transport from Asia to Northern Europe decreased by 1%, while prices for the route to the Mediterranean fell by 2%. In the air freight sector, however, weekly prices for transport from China to North America increased by 2% and to Northern Europe by 7%. Prices for transport from Northern Europe to North America also rose by 3%.
Disruptions in Container Traffic
Despite the largely operational continuity in the ports, security risks and the closure of the Strait of Hormuz have led major container shipping companies to reroute their ships, cancel trips, and suspend new bookings. Hapag-Lloyd and MSC have halted bookings from the Persian Gulf ports as well as from all origins to these ports. CMA CGM has stopped all bookings to and from the Persian Gulf ports, while Maersk has suspended all new bookings for refrigerated containers in the entire region.
These measures are causing uncertain delays for shippers transporting goods in and out of the Gulf region. Canceled trips have already led to an increase in container inventories in India, raising the risk of congestion at container terminals. There could also be backlogs in Far East ports if the closure lasts longer.
Shipping companies that continue to operate in the region are already rerouting containers that are en route, with most cargo expected to be discharged at transshipment ports in Singapore, Malaysia, and Sri Lanka. However, compared to previous crises, it is expected that the congestion in these ports will not be as severe due to lower volumes and higher capacities.
Impact on the Air Freight Market
The closure of airspace over Bahrain, Qatar, Kuwait, and the UAE is also significantly affecting the transport of goods in and out of the region. Qatar Airways and Emirates Skycargo have canceled numerous flights, leading to a decline in global capacity.
Air freight prices have already begun to rise, with prices for transports from Southeast Asia to Europe increasing by more than 6% to 3.82 USD/kg. Prices for transports from Southeast Asia to North America and from South Asia to Europe have also risen. These developments indicate that the geopolitical tensions and the associated logistical disruptions are already impacting global freight markets.
