Operational Update • Ocean • 2 March 26

1. Disruption in the Strait of Hormuz
Iran has officially announced the closure of the Strait of Hormuz. Consequently, all container vessels entering or exiting the Arabian Gulf are being instructed to either return or anchor for safety. Major carriers, including CMA CGM, Maersk, and MSC, have already implemented emergency protocols and are actively seeking safe passage or temporary shelter for their fleets.

2. Suspension of Suez Canal Transits
Due to increased risk of Houthi attacks against maritime targets in the Red Sea/Gulf of Aden, shipping lines have started to discontinue the transit through the Suez Canal. The route is likely to be closed for the foreseeable future.

3. Impact on Transit Times and Port Congestion
As a result of these disruptions, vessels are being rerouted via the Cape of Good Hope (Africa). This diversion is expected to:

• Increase standard transit times by approximately 10–20+ days.
• Cause significant container backlogs and extended waiting times for berth allocation.
• Lead to severe congestion at major transshipment hubs, including Singapore, Colombo, and Tanjung Pelepas.
• Disrupt European Hinterland connections, mirroring the logistical challenges seen during the pandemic and previous Red Sea crises.

4. Regional Port Status & Heightened Security

• Jebel Ali Port (Dubai): Operations are temporarily suspended following a fire incident within the port area.
• Oman: Duqm Port and Asyad Dry Dock have announced a suspension of operations.
• Security Levels: Heightened security measures are now in effect across ports in Bahrain, Kuwait, Qatar, and the UAE.

5. Surcharges and Scope
To cover the increased operational costs and risks, several shipping lines have announced emergency surcharges.