As part of their regular updates to IAM, IAMTrusted member DASA International Movers and IAMX Validated member Move One have reported that ocean freight operations caused by the maritime blockade of the Strait of Hormuz have worsened.
Chief Executive Officer of DASA Craig Reilly confirmed that as of March 22, all major global carriers, including MSC, ONE, PIL, HMM, COSCO, OOCL, and CMA CGM, have joined Maersk and Hapag-Lloyd in suspending all new bookings to and from the Persian Gulf, representing a near-total withdrawal of services from the inner Gulf. Simultaneously, air freight capacity has contracted by 21% as regional carriers suspend specific routes, creating a significant backlog for high-priority shipments.
What You Need to Know
Ocean & Air Freight: Emergency Conflict Surcharges have surged, with CMA CGM now applying up to $4,000 for special and refrigerated equipment. Hapag-Lloyd has maintained its $1,500/TEU War Risk Surcharge. While Jebel Ali has resumed operations, the pace is slow, and most shipowners are opting for “out-of-area” discharge at Khor Fakkan, Fujairah, or Sohar to minimize risk.
While security forces have successfully stabilized the air corridors and the movement of essential goods remains secure, Emirates SkyCargo and KLM are among the air freight carriers that have suspended several regional frequencies, and transit times for air cargo are extending as backlogs grow.
Land and Warehousing
The “East-West” land corridors are under intense pressure, with customs backlogs on the Oman-to-UAE corridor and capacity strained on the Saudi Landbridge. Truck shortages are being reported in Fujairah as cargo is stripped from vessels for onward road transit.
Relocation and Moving
For families and corporate moves, the booking suspension means household goods currently in transit are being diverted to Omani or Red Sea ports. Members should expect significant delays and additional costs as these shipments are moved to their final destinations via road. DASA warns IAM members to ensure that all shipments have comprehensive “War Risk” and “Transit” coverage updated for the current environment.
IAM will continue to update members on this volatile situation impacting household goods moves. Members wishing to update news items affecting their country can email mark.oakeshott@iamovers.org.