With the maritime blockade of the Strait of Hormuz effectively closing the waterway for commercial ocean freight services, the European Union’s formal designation of the IRGC as a terrorist organization has immediately escalated compliance risks for all shippers engaged in regional trade.
In an update to IAM dated March 26, IAMTrusted member DASA International Movers stressed the increased need for international moving and relocation companies to “know your customer” to avoid any compliance offenses. Simultaneously, CEO of DASA Craig Reilly confirmed that the U.S. State Department’s “Depart Now” advisory remains in effect, causing a near-total suspension of routine consular and visa services across the GCC hubs and directly impacting relocation timelines.
Here are the latest updates on key issues for IAM members:
Ocean Freight
Khor Fakkan has emerged as the primary maritime pressure point. The port is currently facing delays exceeding 10 days, with 20-plus vessels waiting at anchorage. Consequently, export and empty bookings at Khor Fakkan are temporarily suspended. Maersk and MSC maintain their total booking suspensions for the inner Gulf (UAE, Oman, Kuwait, Qatar, and Bahrain).
Air Freight
The MedTech and Pharma sectors are facing a critical capacity crisis as major hubs in Bahrain and Kuwait remain closed to commercial cargo. However, a new DHL temperature-controlled pharma charter from Europe to Jeddah is launching next week to provide a dedicated life-sciences relief valve. Air rates remain sustained at 50% above February levels.
Land Corridors
The Jeddah-Dubai road transit is now a primary lifeline, with transit times currently estimated at 8-11 days. Truck shortages and customs backlogs at border crossings are increasing “logistics friction” as sea cargo continues to pivot to road.
Moving & Relocation
The suspension of consular services is the primary bottleneck for international assignments. Mobility managers should expect significant delays in work permit and visa processing. Household goods (HHG) transit times are extending by 10-14 days due to the Cape of Good Hope rerouting and land-bridge congestion.
Recommended Actions:
- Pivot to Jeddah: Utilize Jeddah as the primary gateway for life science and high-value cargo via the new dedicated pharma charter solutions.
- Buffer Timelines: Add a minimum of 10-14 days to all relocation and freight lead times to account for land-bridge congestion and customs delays.
- Compliance Review: Conduct an immediate audit of all regional logistics partners against updated EU and U.S. sanctions lists following the IRGC designation.
- Mode Optimization: Prioritize air-road multimodal solutions via Muscat (MCT) and Riyadh.
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.