Lara Guevara breaks down why Middle East conflict is raising shipping costs even for routes nowhere near it: fuel surcharges, war-risk insurance, reduced air cargo capacity, and Trans-Pacific spot rates up about 10%. She recommends asking your forwarder which factors affect your shipments.
Chapters
The Middle East conflict isn't closing the China-US shipping lane, but it is hitting your freight cost through 4 channels: fuel, insurance, air cargo capacity, and carrier surcharge behavior. Fuel surcharges are rising across multiple carriers. War risk insurance premiums are increasing. Air cargo capacity has dropped significantly because of airspace disruptions, and Trans-Pacific spot rates have already climbed around 10%. None of these require your cargo to go near the conflict zone. There are systematic effects across global logistics. Your shipping lane may still be open, but the economics of that lane have changed. Ask your forwarder this week which of these 4 factors is currently affecting your shipments: fuel, insurance, air capacity, or spot rate changes. And then ask them how much it's costing you.