Middle East Tension: How Freight Traders Respond

The Middle East is in total chaos right now, and for those of us in freight forwarding and foreign trade, it’s yet another nerve-wracking test.

On the air freight side, starting last night, all domestic flights to the Middle East — those already airborne have turned back, and those not yet departed have been cancelled. The Middle East air cargo corridor has been completely shut down.

On the ocean freight side, the Red Sea crisis that has persisted for two years was just showing signs of easing, but now it’s been pushed back into high-risk status. All vessels are expected to reroute around the Cape of Good Hope again. Meanwhile, the Strait of Hormuz has also been declared closed to navigation. Shipping across the entire region has essentially come to a standstill.

As a freight forwarder with 18 years of industry experience, we are focusing on three priorities:

First, providing real-time updates to all affected clients on flight cancellations, airspace closures, and route diversions.

Second, closely monitoring the situation and providing advance risk warnings while planning viable alternative routes for clients.

Third, strongly advising all cargo owners to take cargo transportation insurance seriously, specifically confirming whether war risk and related clauses are covered.

Finally, three urgent recommendations for all foreign trade partners:

1. Immediately track the status of all in-transit cargo and maintain close communication with Middle East clients.
2. For new Middle East orders, prioritize TT (telegraphic transfer) as the payment method to maintain firm control over cargo ownership and risk.
3. For letter of credit orders, be sure to explicitly include war force majeure clauses in both the contract and the L/C, clearly allocating responsibility for delays, rerouting, and other consequences caused by war, conflict, or channel blockages.

I’m Lao Tao in international logistics. I’ll be right here with everyone, closely monitoring the situation and doing everything possible to ensure the safety and transport efficiency of your cargo.