Middle East Conflict: Carriers Suspend Shipments in Red Sea and Eastern Mediterranean

“Almost all carriers have temporarily suspended new bookings, and some services may experience schedule adjustments,” Agrinuts Vietnam said Monday. The dried fruits and nuts exporter said transit times for shipments in the region could be extended, and “freight rates may fluctuate depending on capacity availability.”

It added carriers may impose a War Risk Surcharge (WRS), “potentially even on shipments already in transit (as previously applied by CMA CGM last year). This may result in unexpected additional expenses.”

Cashew market participants told Expana that “Demand is there, but for the time being many can’t make bookings and many sellers consider it as risky.”

“In the worst-case scenarios, shipments may require a change of POD or even return to POL,” Agrinuts Vietnam added.

Food and Agriculture Organization (FAO) data show Iran is the world’s second-largest pistachio producer. It is also a major producer of walnuts, almonds, saffron, and dates.

Wan Hai Lines, a Taiwan-based firm specializing in container liner shipping, container terminal operations and supply chain logistics, announced it was suspending all bookings to United Arab Emirates, Qatar, Bahrain, Oman, Iraq, Kuwait, Saudi Arabia, Egypt, Jordan and Turkey.

Co-authored by:

Jara Zicha
Expana
[email protected]

Image source: Adobe