WHAT’S THE LATEST

Update as of March 6: Ongoing conflict in the Middle East is significantly disrupting global ocean freight operations. All major ocean carriers have suspended services to and from the Middle East and stopped accepting any new bookings across affected trade lanes.

Due to escalating security and operational risks, carriers have activated emergency measures under applicable Bill of Lading provisions. These measures allow vessels to deviate from scheduled routes, terminate voyages early, and discharge cargo at alternate or contingency ports. When this occurs, all costs and responsibilities shift to the shipper.

SEKO continues to monitor the situation closely and will provide updates as new information becomes available.

WHAT WE KNOW

  • War Risk and Emergency Conflict Surcharges now apply to:
    • Bookings issued but not yet shipped.
    • Cargo already on the water but not yet discharged or loaded to/from the Middle East.
  • For cargo already afloat, carriers are implementing emergency measures, including:
    • Vessel deviations to contingency ports.
    • End of Voyage declarations under Bill of Lading provisions.
    • Discharge of cargo at alternate ports selected by the carrier.
    • Once discharged, new arrangements must be made for cargo retrieval and onward movement, with all related costs borne by the cargo owner.
  • Trade lanes not directly connected to the Middle East are experiencing rising spot and market rates heading into the second half of March.
    • Carriers are delaying long‑term contract discussions.
    • New FAK (Freight All Kinds) rates, GRIs (General Rate Increases), PSSs (Peak Season Surcharges), and emergency surcharges are being announced.
    • In the U.S., rate increases and PSS filings are being issued within FMC (Federal Maritime Commission) regulatory notice periods.
  • Port congestion risks are increasing at major Asian transshipment hubs, where vessels carrying Middle East‑bound cargo may be terminated.
  • Fuel costs continue to rise:
    • Global average VLSFO (Very Low Sulfur Fuel Oil), also known as IMO 2020 grade bunker fuel prices, are up approximately 20% week-over-week.
    • UK hauliers have begun implementing Emergency Fuel Surcharges and rate increases to offset higher fuel costs.

SEKO'S GUIDANCE

Given the escalating operational constraints, SEKO recommends that shippers:

  • Plan for vessel diversions and extended transit times on Middle East–related lanes.
  • Expect emergency surcharges and new cost structures associated with unplanned discharge ports.
  • Prepare for increased handling, storage, and inland transport expenses at contingency ports.
  • Engage SEKO immediately for contingency options, cost estimates, and routing alternatives.
  • Review urgent or sensitive shipments and evaluate whether rerouting or mode diversification is necessary.

The situation remains highly dynamic, and SEKO will continue issuing updates as developments occur.

If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.