What Middle East tensions mean for global shipping

23 March 2026

Protecting your cargo in volatile conditions

Conflict in the Middle East is once again introducing uncertainty into global shipping markets. While the situation continues to evolve, the immediate impact is being felt across global shipping networks with the Strait of Hormuz, which normally carries about 20% of the worlds seaborne oil, in active crisis.

Tanker traffic has dropped sharply, with some vessels anchoring outside the region, while insurers have increased war-risk premiums, making passage more costly and complex.

Meanwhile, container lines and energy traders are suspending or rerouting shipments, and port activity in the region is increasingly constrained. The knock-on effects of disrupted shipping flows are being felt globally.

A market accustomed to volatility

The past few years have shown that global supply chains are operating in a far more volatile environment. Pandemic disruption, canal closures, geopolitical tensions and shifting trade policies have all served as a reminder that shipping networks are resilient, but rarely static. Many now see this level of volatility as an ongoing feature of modern trade.

That volatility is now intersecting with a period of structural pressure across the container shipping sector. As the industry enters Q2, global fleet expansion is projected to exceed 30–36% between 2023 and 2027, far outpacing demand and placing downward pressure on freight rates. At the same time, geopolitical instability — including the unresolved Red Sea situation — continues to shape routing decisions, and any sustained reopening could accelerate rate declines by releasing voyage-time-absorbed capacity back into the market.

These dynamics are compounded by shifting trade patterns, blank sailings and inconsistent demand recovery, all contributing to schedule reliability challenges and operational complexity across major trade lanes. Collectively, these factors are creating a margin-compressed environment requiring agile commercial strategies and disciplined capacity management as the industry moves through one of its more challenging periods in recent years.

For cargo owners, the focus has therefore shifted from predicting disruption to managing it pragmatically when it occurs.

Protecting cargo when schedules change

When vessels are delayed, leaving cargo at port terminals is not always the most efficient option. Moving containers away from expensive quay storage into secure inland facilities can provide valuable breathing space while new shipping arrangements are made.

In practice, this often includes using External Temporary Storage Facilities (ETSF) and short-term warehousing to hold cargo safely while schedules stabilise, reducing exposure to port congestion and escalating storage costs.

At Allseas Global Logistics, we support customers through disruption by helping them:

• remove cargo from high-cost port terminals
• access flexible short-term warehousing and External Temporary Storage Facilities (ETSF)
• devan containers where appropriate to reduce equipment charges
• maintain flexibility while replacement sailings are secured

A situation still evolving

It remains unclear how the current geopolitical situation will develop in the coming weeks and months. What is clear, however, is that global trade is operating in an environment where disruption can emerge quickly and where flexibility is more important than ever.

At Allseas Global Logistics, our focus remains on helping customers protect their cargo, manage costs and keep freight moving even when conditions change