Escalating political unrest in the Middle East, including Iran’s attack on Israel and Iran’s seizing of the MSC Aries container ship has had an impact on air freight shipping. 

While the Red Sea crisis has already led to a shift of large amounts of cargo traffic to air, the latest attacks are expected to see air freight costs to Europe rise by 10-15%, as well as a rise in insurance costs. Some airlines have cancelled flights from the Far East to Middle East destinations, including Iran, Jordan, Iraq, Lebanon and Israel. Airlines have had to re-route their flights, causing payload issues, longer transit times, warehouse congestion, and space issues. Some airlines have stopped accepting new cargo until further notice. It is expected that space in the market will become even tighter in the coming days. A possible increase in fuel prices could lead to a further rise in rates.

What to do? 

• Cargo Insurance: Check your cargo insurance for any limitations and guidance, and be prepared for possible risk premiums to be introduced. 
• Contingency Planning: It is important to review and discuss alternative supply chain options to prepare for any possible future changes.
• Rates and Space: Capacity and rates may change quickly, so keep in close contact with your Woodland account manager, and prepare for a change in transit times. 

Contact Woodland Global for advice on a resilient supply chain plan