IAM’s Core Members Management Board representatives for the Middle East have provided the latest update after Iran’s Islamic Revolutionary Guard Corps boarded two container ships under the control of MSC Mediterranean Shipping.
The captured ships were identified as the Panama-flagged MSC Francesca and the Epaminodes. Shipping executives confirmed that the Panama-flagged MSC Francesca and the Greek-owned Epaminodes, operated by MSC, had been boarded and are now anchored near the waterway, according to ship-tracking data. MSC had previously sent four vessels successfully through the Strait of Hormuz.
In addition to their comprehensive country-by-country update, Shankar Ram (Delight International Movers) and Ankit Bhalla (Leader Relocations) highlighted the following:
- CMA, which was releasing container bookings through Jeddah, has started to cancel its bookings because of a lack of inland haulage trailers operated directly by the line from Jebel Ali to Jeddah.
- High demand for trailers as a result of cargo movements by road in the region, with inflated prices.
- Increases in diesel costs in the UAE.
- Bahrain air exports have started to resume slowly via DHL, Gulf Air, and Emirates.
- Packing material supply companies have revised their pricing throughout the region due to a shortage of raw materials and increases in fuel costs.
- Extreme delays in receiving delivery orders (DOs) from MSC for shipments arriving in the UAE (via Khorfakkan to Jebel Ali and Abu Dhabi). Multiple delivery order extension costs are creating a significant impact on clients through additional demurrage and DO extension charges.
IAM Member Impact: Land freight remains the most reliable option across the region. Air freight is viable but costly, while ocean freight continues to experience significant disruption, congestion, and elevated surcharges. Additional costs range from USD 1,500 to USD 7,500 depending on the origin of value (EOV) location and land transit. Timelines are extended by anywhere from two to six additional weeks.