Middle East Shipping Alert

To Our Valued Partners,

The conflict now underway in and around the Persian Gulf and Strait of Hormuz is moving fast, and the impacts on your shipments are immediate.

Areas in scope These measures affect cargo moving to or from the following locations:

Iraq, Bahrain, Kuwait, Yemen, Qatar, Oman, United Arab Emirates, Kingdom of Saudi Arabia, Jordan, Egypt (Port of Ain Sokhna), Djibouti, Sudan, Eritrea.

1) Security incidents are increasing, driving the above actions Multiple attacks and incidents have been confirmed near the Strait of Hormuz and the UAE coast this week. The Malta-flagged container ship Safeen Prestige was struck by an unknown projectile approximately 2 nautical miles north of Oman while transiting eastbound through the Strait of Hormuz. The strike caused an engine room fire and the crew abandoned ship. This is the first reported container ship casualty of the current conflict. A separate incident was also reported involving a product tanker approximately 10 nautical miles east of Fujairah. These events are driving the rapid carrier restrictions, diversions, and emergency pricing now being implemented across the industry.

2) New ocean surcharges being implemented

Emergency Conflict Surcharge (example, CMA CGM) Carriers have announced an Emergency Conflict Surcharge for the countries and ports listed above. One published structure is:

• $2,000 per 20′ dry container
• $3,000 per 40′ dry container
• $4,000 per reefer or special equipment
• Applies to bookings issued on or after March 2, 2026, and in some cases to cargo not yet shipped and cargo already afloat that has not yet been discharged or loaded for the impacted scope.

War Risk Surcharge (example, Hapag Lloyd) Hapag Lloyd has announced a War Risk Surcharge for certain Gulf moves, including applicability to bookings already issued but not yet shipped and certain in-transit cargo depending on status.

• $1,500 per TEU for standard containers
• $3,500 per reefer or special equipment

Important note: Surcharges may apply even if you already have a booking, depending on the carrier’s published applicability language.
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3) Major carrier operational actions you need to know

MSC: End of Voyage declaration for Arabian Gulf destinations MSC has declared an End of Voyage for shipments under MSC custody and care destined for ports in the Arabian Gulf. What this means operationally:

• Cargo may be discharged at the next safe port rather than the original Gulf destination
• Shippers may be required to take over responsibility for onward movement and local costs at the discharge port
• A mandatory $800 per container surcharge applies to all affected shipments to cover deviation costs

Maersk: Booking acceptance suspended for multiple Gulf countries Maersk has announced a temporary suspension of cargo booking acceptance in and out of the UAE, Oman (all ports apart from Salalah), Iraq, Kuwait, Qatar, Bahrain, and Saudi Arabia (Dammam and Jubail only). Exceptions apply for critical foodstuff, medicine, and perishables. The suspension covers cargo originating from, destined for, or transshipping through the named countries. Jeddah, King Abdullah Port, and Salalah remain operational at this time.

COSCO: Suspension of new bookings on select Middle East routes COSCO has announced suspension of all new bookings for cargo moving to and from select Gulf destinations, including the UAE (excluding Khor Fakkan and Fujairah), Bahrain, Iraq, Saudi Arabia (excluding Jeddah), and Kuwait. Jeddah, Khor Fakkan, and Fujairah are accessible without transiting the Strait of Hormuz and are currently excluded from the suspension. COSCO is also evaluating contingency options for cargo already on board.

ONE: Temporary suspension of new bookings to and from the Persian Gulf Ocean Network Express (ONE) has announced a temporary suspension of new bookings for cargo moving to and from the Persian Gulf until further notice.

4) Insurance and political risk coverage updates

Marine war risk insurance is tightening As conflict risk rises, war risk premiums and coverage conditions are changing quickly, and those costs are being passed through in the form of surcharges and emergency measures.

President Trump statement on political risk insurance and escorts On March 3, 2026, President Donald J. Trump stated that he ordered the U.S. Development Finance Corporation (DFC) to provide political risk insurance and guarantees for maritime trade traveling through the Gulf. He also indicated the U.S. Navy may begin escorting tankers through the Strait of Hormuz if necessary.

Important note for shippers: This statement signals potential support, but practical program details, eligibility, timing, and how it would apply to cargo owners and shipping lines may still evolve.

5) Force Majeure: What we are seeing and what it can mean for shippers

Force majeure is now appearing in several parts of the regional supply chain.

• QatarEnergy has declared force majeure on LNG shipments following Iranian attacks on its production facilities at Ras Laffan and Mesaieed Industrial City. The company has halted production of LNG and downstream products including polymers, methanol, and aluminum. This is a physical production shutdown, not only a shipping disruption, and a full restart could take a month or more.
• Aluminium Bahrain (Alba) has declared force majeure on its supply contracts because it cannot ship product out of the region. The smelter itself is still operating; the metal is being produced but cannot be exported through the Strait of Hormuz.

Why this matters to cargo owners

• If your supplier declares force majeure, it can impact production schedules, ready dates, and contract performance obligations.
• Even when force majeure is not formally declared by the ocean carrier, carriers can still rely on bill of lading terms and safety provisions that allow diversion, discharge at alternate ports, and additional cost recovery when conditions require it.

6) What shippers should expect next

Based on today’s conditions, please plan for:

• New surcharges that may apply to existing bookings depending on carrier rules
• Booking restrictions and temporary suspensions into Gulf destinations
• Diversions, discharge at alternate ports, and added local port and inland costs in some scenarios
• Congestion and longer transit variability as vessel backlogs grow

We are actively monitoring official guidance and will share updates as new information becomes available. If you have questions, call me anytime at 833-782-7628 Ext. 1.