Following our previous advisory on the escalating conflict in the Middle East and its impact on global supply chains, we would like to provide a further operational update incorporating the latest developments across ocean freight, air freight, and inland transport markets.
While the situation across the region remains highly volatile, the global logistics industry is continuing to adapt operations in order to maintain cargo flows where possible.
Below is a summary of new developments since our last update and what this may mean for importers and exporters, particularly those trading between Europe, Asia and Australia/New Zealand.
Global Shipping Network Update
Security risks around the Strait of Hormuz continue to influence shipping line network decisions, with many carriers maintaining contingency routing and operational safety measures.
These measures include:
- Temporary suspension of vessel transits through high-risk zones
- Selective booking restrictions for certain Middle East destinations
- Vessel rerouting away from conflict areas
- Schedule adjustments and port omissions across global services
Despite these disruptions, current services between Europe and Australia / New Zealand remain largely operational, and most transit times on these trade lanes remain unchanged for now. However, schedule reliability may still fluctuate as carriers continue to assess security risks and adjust networks accordingly.
Ocean Freight – New Emergency Fuel Surcharges
Rising bunker fuel prices driven by regional instability are now resulting in new cost measures from container shipping lines.
Emergency fuel surcharges have been introduced on exports from Australia and New Zealand to multiple global regions, reflecting the sharp increase in bunker fuel prices.
Similar announcements from other carriers are expected if fuel volatility continues.
LCL Consolidation Network Disruptions
The evolving conflict is also beginning to impact Less-than-Container Load (LCL) networks, particularly those relying on Middle East transshipment hubs.
Current developments include:
- Suspension of LCL acceptance for several Gulf destinations including Bahrain, Kuwait, Qatar and Iraq
- Significant disruption to transshipment operations via Jebel Ali Port
- Limited routing options via alternative ports such as Khor Fakkan and Fujairah
- Emergency LCL surcharges
As a result, forwarders are recommending caution when planning LCL shipments to the Middle East until network stability improves.
Air Freight – Air Freight – Capacity Constraints Continue
Air freight capacity across the Middle East remains significantly constrained due to ongoing airspace closures and reduced airline operations.
Recent developments include:
- Emirates operating a limited number of passenger and freighter flights, prioritising cargo already in the system.
- Etihad Airways resuming selected commercial services from Abu Dhabi on a restricted schedule.
- Qatar Airways Cargo remains temporarily suspended due to the closure of Qatari airspace, and will only resume services once the Qatar Civil Aviation Authority confirms the safe reopening of the airspace.
Because Middle East carriers normally provide a significant portion of air cargo capacity between Europe, Asia and Australia, these restrictions continue to place pressure on available space and pricing.
Customers should expect:
- Reduced cargo capacity on affected routes
- Possible backlogs while airlines clear existing cargo
- Rate volatility due to constrained supply
Some airlines have also indicated that existing contract capacity commitments may be temporarily suspended, with cargo moving under tariff or express rate structures where capacity is available.
Container Equipment Management Changes
In response to operational constraints across Gulf ports, Maersk has implemented temporary empty container return restrictions for several Middle East import locations.
Until further notice, empty containers for imports into the following countries cannot be returned at their usual locations:
- UAE
- Qatar
- Saudi Arabia (Dammam & Jubail)
- Bahrain
- Kuwait
- Iraq
- Oman (Duqm)
Instead, containers must be returned to designated depots in Jeddah, Salalah or Sohar. These temporary measures are intended to ensure equipment availability and operational safety while conditions in the region remain unstable.
European Inland Transport – Fuel Surcharge Increases
Rising oil prices linked to the conflict are now beginning to affect European inland transport markets.
In particular:
- France has already announced fuel surcharge increases of approximately 5% on inland transport costs.
- Additional European markets are expected to follow as diesel prices continue to rise.
This may impact door-to-port or port-to-door inland transport costs for European imports into Australia and New Zealand.
Australian Container Transport – Diesel Price Shock
Fuel price volatility is now having a significant impact on container transport logistics across Australia.
According to analysis from the Australian Institute of Petroleum, the average Terminal Gate Price (TPG) for diesel increased by approximately 29–31% across Australian capital cities in just one week (4–10 March).
Recorded increases across major container port cities include:
- Sydney: +30.35%
- Melbourne: +29.22%
- Brisbane: +30.19%
- Adelaide: +30.67%
- Perth: +30.74%
As container transport operations rely heavily on diesel-powered road and rail services, these increases are creating significant cost pressure across the domestic logistics sector.
Industry bodies have advised that transport operators are reviewing Fuel Surcharge (FSC) mechanisms on a weekly or even daily basis, and additional adjustments may occur if fuel prices remain volatile.
As a guide, a diesel increase of 5 cents per litre typically results in approximately a 0.7% increase in Fuel Surcharge levels.
Looking Ahead – Additional Cost Pressure
Further cost increases are expected later in the year.
From 1 July 2026, the Australian Government will increase the Heavy Vehicle Road User Charge, reducing the level of Fuel Tax Credits available to transport operators by approximately 6%.
This policy change is expected to translate into approximately a further 1% increase in Fuel Surcharge levels across container transport services.
What Clients Should Expect
Given the evolving conditions, customers should anticipate:
- Continued freight rate volatility due to fuel costs
- Emergency surcharges across multiple transport modes
- Potential air freight capacity constraints
- Possible schedule adjustments and operational changes at short notice
At present, most Europe – Australia / New Zealand shipping services remain operational with transit times broadly unchanged, although this could evolve if the conflict escalates further.
Our Ongoing Monitoring
Our teams continue to monitor developments across:
- Global carrier network changes
- Air freight capacity availability
- Fuel markets and transport surcharge adjustments
- Operational conditions across Middle East logistics hubs
We will continue to provide updates as the situation develops.
If you have any questions regarding current shipments or upcoming freight movements, please contact your Key Account Manager or Business Representative.