The Strait of Hormuz Is Closed— And So Is the Suez Canal: What It Means for Global Shipping
- Mar 1
- 5 min read
Updated: Mar 24
Published: March 1, 2026
This article reflects verified operational data as of March 1, 2026. The situation is evolving — check back for updates.
What began as a regional military escalation has become the most severe simultaneous disruption to ocean and air freight networks in recent memory. On February 28, 2026, following joint U.S. and Israeli military strikes on Iran, the Strait of Hormuz was closed to international navigation — and within hours, carriers suspended Suez Canal transits as well. Both of the world's most critical maritime shortcuts are now effectively offline at the same time.
This is not a risk to monitor. It is an active supply chain crisis, and it is affecting your shipments right now.
What Happened — The Full Picture
February 28, 2026: Following the military strikes, Iran's IRGC announced the closure of the Strait of Hormuz, broadcasting VHF warnings that no vessel is permitted to transit. Simultaneously, carriers suspended all Suez Canal transits due to the escalation, reversing a trend that had only just begun — several major services had recently returned to Suez after more than a year of Cape of Good Hope diversions due to Houthi activity.
The significance of the Suez suspension cannot be overstated. CMA CGM had recently resumed Suez transits on its flagship FAL 1 and FAL 3 services connecting Asia with Northern Europe, reducing full-loop transit times by seven days — from 105 days down to 98. That efficiency gain has now been reversed, with both services returned to Cape routing. Within the Gemini Cooperation, Maersk and Hapag-Lloyd had also announced that their AE12 and AE15 services were next in line for a structural return to Suez. Those plans have been formally withdrawn.
Vessels currently inside the Persian Gulf have been instructed to take shelter at major hubs including Jebel Ali, Abu Dhabi, and Doha. Cargo on those vessels is effectively paused until safe passage can be reestablished.
Several major carriers and airlines have invoked force majeure, suspending standard service level agreements and transit time guarantees. This has direct contractual implications for shippers — particularly those with time-sensitive or Just-in-Time supply chains.
Ocean Freight: What Is Actually Happening by Trade Lane
Asia – Europe
This is the most heavily impacted major trade lane. All services are being rerouted around the Cape of Good Hope. Transit times between Asia and Europe are expected to increase by 10 to 14 days as a direct result. CMA CGM's MEX service linking Asia with Valencia and Fos-sur-Mer has reverted to Cape routing. Gemini's SE1 and SE3 services — recently upgraded to 20,000 TEU vessels with planned Suez routing — have withdrawn the Suez component. Expect capacity tightening, schedule reliability degradation, and spot rate increases on this corridor.
Persian Gulf Ports (Jebel Ali, Dammam, Doha, Kuwait, Bahrain)
These ports sit entirely inside the Persian Gulf and require Hormuz transit for all ocean access. They are effectively cut off. Cargo destined for Gulf ports is being held at transshipment hubs or diverted to alternative Mediterranean and African gateways. Several carriers have suspended new bookings to Persian Gulf destinations until safe feeder or land-bridge solutions can be confirmed.
Asia – U.S. East Coast
The direct impact here is more limited than on Asia-Europe, as most Transpacific services were already avoiding Suez. However, Indian Subcontinent-linked routings are affected, and secondary pressure from equipment imbalances and capacity tightening is likely across the broader Transpacific network.
Turkey – Gulf Countries
Direct ocean services are suspended. All Gulf-bound cargo from Turkish ports faces the same Hormuz blockage. Shippers moving cargo between Turkey and the GCC should expect indefinite delays on ocean freight and must evaluate overland and air alternatives.
Air Freight: The Backup Option Is Also Down
Air freight is not an escape route in this crisis — at least not through the Middle East.
On the same day as the Hormuz closure, coordinated airspace shutdowns were implemented across Qatar, the UAE, Saudi Arabia, and Kuwait. Dubai and Doha — two of the world's largest long-haul transfer hubs — suspended operations. Emirates halted flights to and from Dubai until further notice.
Middle Eastern carriers collectively represent 13.6% of global air freight capacity (IATA). Their near-total grounding, combined with the longer and more fuel-intensive rerouting required by European and Asian airlines bypassing Middle East airspace, is reducing effective global air capacity and sharply increasing costs. Most airlines have suspended service level agreements and transit time guarantees for the affected region.
The practical implication: if you were planning to shift time-sensitive Gulf-bound cargo to air, the capacity to do so is severely constrained and pricing has already spiked. Act fast if air freight is necessary.
What can work: Sea-Air solutions routing through Southeast Asian gateways — bypassing the affected zone entirely — are being evaluated by some forwarders as an alternative for certain high-value cargo flows.
Most Exposed Trade Lanes
Europe ↔ Persian Gulf (UAE, Saudi Arabia, Qatar, Kuwait, Bahrain): Critical — ocean and air both disrupted
Asia → Persian Gulf: Critical — services suspended, vessels sheltering
Turkey → Gulf Countries: Very High — direct ocean services suspended
Asia → Europe (via Suez): Very High — Suez return plans cancelled, 10–14 days added transit
Americas → GCC (via Suez): High
Global Transshipment via Jebel Ali: Very High — cascades to East Africa, South Asia, CIS
Red Sea / Suez-adjacent trades: High — further destabilized
What Shippers Must Do Right Now
1. Identify All Exposed Shipments Immediately
Contact your freight forwarder for status on every in-transit or pending shipment bound for Gulf destinations or routing via Suez. Do not wait for carrier notification — vessel shelter positions and flight diversions are changing hourly.
2. Understand Force Majeure Implications
Carriers and airlines have invoked force majeure, which suspends standard transit time guarantees and service level agreements. Review your contracts to understand what obligations — yours and your carrier's — are affected.
3. Check Your Incoterms and Risk Transfer Points
Under FOB, the buyer assumes risk from loading. Under CIF, the seller covers insurance to destination. Under DDP, the seller bears full responsibility including delivery. With war risk clauses being triggered and rerouting costs rising, your Incoterms determine who pays for what.
4. Verify Insurance Coverage Today
Insurers are triggering seven-day war risk cancellation clauses now. Confirm whether your cargo insurance includes war risk and SRCC clauses. If not, your window to secure coverage is narrowing rapidly.
5. Pause New Bookings Until Rates Stabilize
Any rate quote issued before February 28 is void. Emergency diversion fees, war risk surcharges, and General Rate Increases are being applied across all affected lanes. Confirm current pricing before committing.
6. Rebuild Lead Time Assumptions
If your supply chain runs on lean inventory and relies on Gulf or Suez-connected routes, your lead time assumptions need to be rebuilt from scratch. Work with procurement and operations to identify critical stock positions before shortages materialize downstream.
Three Scenarios for Planning
Short-term de-escalation (days to 2 weeks): Even in the best case, vessel diversions, blank sailings, and insurance gaps will take weeks to unwind. Freight rates will remain elevated well after routing normalizes.
Prolonged disruption (2–8 weeks): Cape routing becomes the structural baseline for Asia-Europe trades. Gulf port backlogs build. Air capacity from the region remains constrained. Businesses dependent on GCC supply chains need active contingency planning.
Extended closure(2months):Fundamental restructuring of global container routing. Sharp freight rate increases on all east-west trades, accelerated modal shift to air for high-value cargo, and full contingency sourcing activation for GCC-dependent supply chains.
How Movargo Can Help
Our team is monitoring this situation in real time, in direct contact with carriers, port agents, and customs authorities across the affected region. We are already working with clients on alternative routing, shipment holds, force majeure documentation, and insurance coordination.
If you have cargo moving to or from the Gulf — or if you need to understand how this crisis affects your broader supply chain — reach out now.
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