IAM members around the world are navigating a rapidly shifting operational environment as the conflict in the Middle East drives up costs, disrupts shipping routes, and creates new barriers to serving customers, including military families relying on timely household goods moves.
Freight Costs and Shipping Disruptions
The escalation has sent freight costs surging. FreightWaves reported that the conflict has led to chaos at ports, with shipping lines diverting, canceling, and suspending bookings. In Dubai, DP World briefly suspended operations at the container port of Jebel Ali after an aerial interception caused a fire there.
“Hapag-Lloyd and MSC suspended bookings out of Persian Gulf ports and from all origins to these ports, including Oman and United Arab Emirates ports on the Gulf of Oman side of the strait because of their proximity,” said Judah Levine, ocean and air analyst at Freightos. “CMA CGM stopped accepting all bookings to and from Persian Gulf ports only. Maersk suspended all new reefer bookings to the entire region, and bookings out of India to the gulf because of the short lead time,” added Levine.
CMA CGM introduced an emergency surcharge of $3,000 per forty-foot equivalent unit (FEU) for containers heading to the Gulf, and other carriers are also applying fees for diverted bookings. Freightos rates for Shanghai to Jebel Ali spiked from $1,800 per 40-foot container on March 1 to more than $4,000 per FEU by March 3.
With the Strait of Hormuz effectively closed and major carriers, including Maersk and Hapag-Lloyd, rerouting vessels around Africa’s Cape of Good Hope, transit times for cargo moving to and from the region have increased by an estimated 10 to 14 days. Members with international shipments in transit should anticipate delays and increased costs across Gulf-connected trade lanes.
Rising Fuel Costs Across All Modes
The impact extends beyond ocean freight. U.S. wholesale diesel prices jumped more than 30% last week, while crude oil surpassed $100 per barrel for the first time in four years. For domestic movers, rising diesel prices directly affect per-mile operating costs. For international operators, higher bunker fuel costs compound the surcharges already being imposed by ocean and air carriers rerouting around conflict zones.
Military Installation Access
Members supporting U.S. military moves should also be aware that the Department of Defense has elevated security levels at installations worldwide. Heightened base access protocols, including stricter ID verification, increased vehicle inspections, and at some locations, suspension of expedited access programs, may result in significant delays for moving crews executing Permanent Change of Station (PCS) operations. IAM is engaging DoD program leadership on this issue.
IAM Is Engaged
IAM is actively monitoring these developments and engaging with government and military stakeholders to advocate for solutions. Members experiencing operational disruptions, whether related to freight costs, shipping delays, or base access, are encouraged to contact IAM.