As of March 1, 2026, both of the Middle East’s critical maritime passages are effectively closed to commercial traffic. Following US and Israeli strikes on Iran under Operation Epic Fury, Iranian Revolutionary Guards announced that "no ship is allowed to pass the Strait of Hormuz" . Simultaneously, Houthi forces resumed threats to attack shipping in the Red Sea and Gulf of Aden, ending the ceasefire that had held since early 2025. For container shipping, this is unprecedented: the Strait of Hormuz handles 20% of global oil and gas exports and serves as the sole maritime gateway to Jebel Ali, the Middle East’s primary transshipment hub . With DP World suspending operations at Jebel Ali terminals and customs processes frozen, Gulf ports are isolated from global ocean trade.
Carrier Response: From Surcharges to Suspensions
Major carriers have enacted emergency measures. CMA CGM instructed all vessels in the Persian Gulf to "proceed to shelter" and suspended all Suez Canal transits, rerouting via the Cape of Good Hope while imposing an Emergency Conflict Surcharge of $2,000–$4,000 per container effective March 2 . Hapag-Lloyd suspended all Strait of Hormuz transits. Maersk paused its ME11 and MECL services, reversing earlier plans to resume Suez routing. MSC went further, suspending all worldwide cargo bookings to the Middle East region and directing vessels to "designated safe shelter areas". War risk insurance coverage for the Persian Gulf has been cancelled by major underwriters including Steamship Mutual, with cancellation effective 72 hours after March 1.
The SWWLS Contingency Protocol
Sunny Worldwide Logistics (SWWLS) activated its Middle East Crisis Response Plan on March 1 at 06:00 UTC—three hours after the first Hormuz closure warnings. The protocol addresses five cargo scenarios:
For uncollected SOs (shipping orders): SWWLS recommends immediate cancellation. Clients insisting on shipment must accept carrier-imposed war risk surcharges of $300–$500 per TEU and potential mid-voyage diversions. "We require written acknowledgment that the cargo may face indefinite delays or forced discharge at alternative ports," notes Alex Wu, SWWLS operations director.
For empty containers already collected but not returned: Immediate return to depot advised. If clients proceed, SWWLS mandates pre-payment of all freight charges with no refund guarantee, plus collateral to cover potential demurrage if carriers suspend service mid-voyage.
For cargo gated in but not loaded: SWWLS is contacting all affected clients to confirm hold-or-return decisions. Cargo remaining at port faces indefinite storage fees and potential customs complications if Jebel Ali operations remain suspended.
For cargo in transit: 400 TEU currently en route to Gulf destinations are being monitored via satellite AIS tracking. SWWLS has identified 127 containers at risk of diversion to Port Said or Jeddah, with land bridge trucking arranged to final GCC destinations.
For cargo already discharged: Urgent retrieval advised. SWWLS has contracted local trucking networks in Jebel Ali, Sohar, and Dammam to clear cargo before potential port closures or congestion surcharges.
Alternative Routing: Air, Land, and Cape
With Hormuz closed and the Red Sea high-risk, SWWLS is executing three alternative strategies:
Air freight surge: For urgent cargo under 500 kg, SWWLS has blocked space on CX, EK, and QR freighters from HKG and CAN to DXB, with onward trucking to Saudi Arabia, Kuwait, and Qatar. Rates have increased 40% since March 1, but transit time holds at 3–4 days versus indefinite ocean delays.
Land bridge via Jeddah: Following the model developed during the 2024 Red Sea crisis, SWWLS is offloading containers at Jeddah and trucking to Riyadh, Dammam, and Bahrain. This bypasses Hormuz but adds 7–10 days and $800–$1,200 per TEU in trucking costs.
Cape of Good Hope diversion: For non-urgent cargo, SWWLS is rerouting Asia-Europe shipments around Africa, adding 10–14 days but eliminating war risk premiums. This mirrors the carrier strategy but requires precise inventory planning to offset extended transit.
Case in Motion: The Riyadh Medical Shipment
On March 1 at 14:30, a Saudi pharmaceutical distributor contacted SWWLS. 3,200 kg of temperature-controlled cancer medications were gated in at Yantian, scheduled for Jeddah transhipment to Riyadh via MSC. With MSC suspending Gulf bookings and Jeddah facing congestion, SWWLS executed a 26-hour pivot: cancelled ocean booking, secured CX 077 HKG-RUH direct cargo space, arranged -20°C passive packaging, and cleared Saudi FDA pre-approval. The shipment flew March 3, landed March 4, and reached Riyadh cold storage March 5—beating the original ocean ETA by 11 days and avoiding the risk of port isolation.
Market Outlook and Client Guidance
Brent Crude has jumped 10% to $80/barrel, with analysts warning of $100–$130 if Hormuz closure extends beyond 30 days. Container rates to the Gulf are effectively frozen—carriers have withdrawn quotes pending stabilization. SWWLS advises clients with Q2 Middle East commitments to:
Shift urgent inventory to air freight immediately, accepting 35–50% cost premiums versus pre-crisis ocean rates.
Build 21-day safety stock buffers for GCC markets, using land bridge from Jeddah as the primary alternative.
Review Incoterms to transfer risk, considering DDP ex-Jeddah rather than traditional FOB arrangements.
Monitor carrier advisories daily—SWWLS publishes updates at air-shipment.com as the situation evolves.
About SWWLS
Sunny Worldwide Logistics maintains AEO-certified operations across 12 Chinese ports with direct EDI connections to 28 airlines and real-time AIS tracking for ocean cargo. The Middle East Crisis Response Plan was developed during the 2021 Suez blockage and refined through the 2023–2024 Red Sea disruptions, enabling 98.7% on-time delivery for diverted cargo during the current crisis.
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