Impact of Middle East Conflict on Global Supply Chains

The ongoing conflict in the Middle East has escalated since late February 2026, resulting in significant disruptions across global air and ocean freight networks. While the Philippine government has stated there is no major global supply chain impact to the Philippines yet, the situation remains volatile, and emerging international developments are beginning to affect transit times, capacity, and routing options.

1. Ocean Freight Disruptions

a. Suspension of Transits Through Key Maritime Corridors
• Multiple carriers have suspended transits through the Strait of Hormuz, a critical gateway linking Gulf states to global trade lanes.
• Some services have also paused Suez Canal routings, prompting ships to reroute via the Cape of Good Hope, adding 10–15 days to transit times.
• As vessels hold position or reroute, customers may experience:
o Longer transit times
o Blank sailings
o Potential port congestion upon resumption of movements
o Equipment imbalance (containers falling out of position)

b. Expected Cost Increases
• Rising war-risk insurance premiums, bunker rate hikes, and congestion surcharges are expected as carriers navigate longer, risk-adjusted routes.

2. Air Freight Disruptions

a. Regional Airspace Closures
• Airspace in UAE, Qatar, Kuwait, Israel, Bahrain, and Iraq has been intermittently closed. Major hubs such as Dubai and Doha have reduced operational capacity.
• This has caused:
o Rerouting of flights
o Longer transit times on Asia–Middle East and Asia–Europe corridors
o Reduced global air cargo capacity as freighters reposition around closed zones
o Volatile flight schedules and short-notice cancellations

b. Rate Volatility
• Market reports indicate upward pressure on air freight rates due to constrained capacity and possible war-risk surcharges.

3. Energy-Related Impacts
• Approximately 20% of global oil exports pass through the Strait of Hormuz; closures increase risk of fuel price volatility that may influence freight and domestic transport costs.
• Philippine authorities note no major consumer impact yet, but any prolonged crisis may raise transport and logistics costs.

4. Expected Impact on Shipments to and from the Philippines
While the Philippines is not directly part of the affected trade zone, customers should anticipate:
• Longer lead times for imports routed through Suez or involving Europe, Middle East, and Africa (EMEA) trade lanes
• Delays in container availability for Asia-bound cargo due to global equipment imbalance
• Potential increases in ocean and air freight costs
• Unpredictable schedule adjustments due to safety-driven rerouting by carriers

AC Logistics continues to coordinate closely with our global network partners and carriers to mitigate impacts and secure alternative routings as necessary.

5. Our Recommendations
• Add buffer time to your shipping lead times.
• Book shipments earlier to secure space amidst tightening global capacity.
• Prepare for possible cost adjustments (war-risk, rerouting, bunker).
• Monitor updates from your AC Logistics account manager.

Beyond responding to emerging global supply chain challenges, AC Logistics remains committed to building a future-ready logistics network. We are actively exploring EV adoption, renewable energy applications, and other sustainability-driven innovations to strengthen long-term operational efficiency.

For any concerns regarding active or upcoming shipments, please contact your AC Logistics Account Manager.

Thank you for your continued trust.