April 6, 2026

Supply Chain & Logistics Update – April 2026

Middle East Conflict Disrupts Global Transportation Networks

Ocean Freight Impact

The ongoing disruptions in the Middle East have significantly affected global transportation, with notable effects on ocean freight. Key routes, including the Suez Canal, have been temporarily suspended, and further delays have affected return schedules. The closure of the Strait of Hormuz has particularly affected access to the Gulf, forcing ships to reroute around the Cape of Good Hope, adding significant transit time—sometimes extending weeks rather than days.

Air Freight Challenges

Simultaneously, the conflict has heavily impacted air freight. With airspace restrictions and reduced operations at Gulf hubs, traditional air corridors have been limited. These disruptions are compounding the already strained ocean freight systems, as cargo typically moving through the Gulf is now rerouted to alternative gateways across Asia, Europe, and North America.

Compounded Structural Tightening

These disruptions have led to capacity tightening due to longer voyage distances and equipment imbalances, pushing operating costs higher. Fuel-related surcharges, risk premiums, and deviation-driven fees are expected to continue rising. As a result, shippers may face unpredictable transit times and limited routing options, with carriers adjusting networks to cope with the disruptions.

Ocean Freight Recovery Post-Lunar New Year

As of early March, ocean freight conditions are shifting. The post-Lunar New Year period usually brings back scheduled services, but the recovery has been uneven. With blank sailings in February and early March, some trade lanes have started to normalize, while others, such as the Trans-Pacific route, continue to experience capacity shortages.

For North American exports, capacity from the Gulf and West Coast to Europe remains constrained, while the East Coast sees better availability. However, upcoming service removals and consolidations are expected to tighten space as Q2 approaches.

Planning Ahead

With these disruptions, flexibility in shipping and early engagement are becoming increasingly critical. Shippers should closely monitor service availability and adjust their routing choices to ensure timely deliveries. For lanes influenced by trade policies or currency fluctuations, adjusting plans early can help mitigate potential risks.

April 2026 Ocean Freight Market Outlook

Key
++	Strong Increase
+	Moderate Increase
=	No Change
–	Moderate Decline
—	Strong Decline

Outbound

Middle East – Asia

Mixed conditions, with disruptions in MENAT, strong volumes to Europe, and weak demand to LATAM.

Capacity – (–)

Rate – (++)

Middle East – Europe

Vessel delays and severe weather conditions in Rotterdam and the Western Mediterranean have caused port congestion, increased yard density, and disrupted operations, impacting inbound freight flow.

Capacity – (-)

Rate – (+)

Middle East – Latin America

Operations across Latin American ports remain stable, with manageable yard occupancy. However, localized pressure due to seasonal cargo flows and vessels arriving outside scheduled windows occasionally causes delays of 1-3 days, particularly in East Coast South America. Delays have not caused widespread disruption in the Central America, Andina, and Caribbean Sea Area.

Capacity – (=)

Rate – (=)

Inbound

Asia – Middle East

Suez return delayed, rerouting via Cape, tight space to EURO NC, delays in Hamburg.

Capacity: (-)

Rate: (+)

Europe – Middle East

Limited labor availability during the Easter holidays and adjustments to the SAMBA service in the Western Mediterranean aim to address delays and recover schedules.

Capacity – (=)

Rate – (=)

Latin America – Middle East

Strong demand expected on East Coast South America, stable operations with localized pressure on West Coast.

Capacity – (=)

Rate – (+)

April 2026 Air Freight Update

Demand: Demand is recovering unevenly, with strong growth in South Asia, particularly in the India-North America corridor. The pace of recovery is variable, driven by seasonal demand, quarter-end shipping, and perishables from South America

Capacity: Capacity remains tight due to limited freighter availability, Gulf airspace disruptions, and delays in freighter conversions. Passenger flights have added cargo space, but it is insufficient to handle sudden demand surges, leading to constrained capacity.

News: Middle East geopolitical tensions have disrupted air freight, especially in Gulf hubs, forcing cargo rerouting to Asia and Southeast Asia. This has led to extended transit times, higher costs, and rising surcharges due to operational complexities.

The Middle East and Air Carriers

Geopolitical tensions and airspace restrictions in the Gulf region continue to disrupt global air freight, particularly affecting key transit corridors. Operations at Gulf hubs, like Abu Dhabi, Doha, and Dubai, remain heavily constrained, impacting not only Middle East-origin cargo but also flows connecting Asia, Europe, and North America. Around 12-13% of global capacity has been affected, leading to longer transit times and less predictable schedules.

Asia

After the Lunar New Year, air freight volumes from Asia are gradually normalizing, but the recovery is uneven. Some regions have resumed production, while others are ramping up more slowly. Passenger flights returning to service have added cargo space, but the shortage of dedicated freighters continues to restrict capacity, making it challenging to adjust quickly when demand spikes, driving price fluctuations.

America

Air freight from South Asia to North America has increased significantly, especially in the India-North America corridor, where tonnage rose by 14% week-over-week. However, limited freighter availability and disruptions from the Middle East conflict continue to strain capacity. As a result, transit times remain unpredictable, and freight rates are climbing due to operational complexities and tight capacity.

Europe

Air freight from South Asia to Europe has shown moderate growth, with a 6% increase in tonnage week-over-week. However, disruptions caused by airspace restrictions in the Gulf and ongoing geopolitical instability continue to impact scheduling and routing. The return of passenger flight cargo space is easing some pressure, but capacity remains dependent on the pace of demand recovery.

April 2026 Shipping Insights for the UAE

Congestion fee for Beira port in Mozambique, effective March-April 2026, with specific rates. Read More

Emergency Contingency Surcharge of $1,800-$3,000 applied to Southern Africa & IOI routes due to Middle East instability. Read More

Revised Dry Port Surcharge (DPS) for Gurgaon, Patli, and Ahmedgarh, India, effective March 31, 2026. Read More

Peak Season Surcharge (PSS) of $500 applied for containers from Asia to Middle East ports. Read More

Peak Season Surcharge (PSS) of $300-$1400 applied for containers from China/Hong Kong to Kenya/Tanzania. Read More

Revised Import Demurrage and Detention rates for South Africa effective April 15, 2026. Read More

Drop Off Charge Import (DRP) rates increased for Southern Africa and Islands, effective April 20, 2026. Read More

Maersk revises Southern Africa and Islands inland surcharges, effective April 20, 2026. Read More

Maersk revises Equipment Positioning and Drop Off Charges for Southern Africa, effective April 2026. Read More

Maersk revises Drop Off Charge (DRP) for South Africa, effective April 30, 2026. Read More

Maersk introduces 8% Export and Import Intermodal Fuel Fee for Southern Africa, effective April 2026. Read More

Global Factory Output – Overview

The Drewry World Container Index has reached $2,279 after an increase of 5% for 40ft containers.

United States of America (USA)

US manufacturing showed resilience in March, with steady business confidence despite the Middle East conflict. However, rising input costs, driven by oil prices and delivery delays, are causing concern. Manufacturers are stocking up and slowing hiring, fearing that ongoing price pressures and supply chain disruptions could harm demand and production.

United Kingdom (UK)

UK manufacturing output shrank in March, impacted by the Middle East war and domestic economic concerns. Rising input prices and supply chain delays, the worst since 2022, hindered production. Business confidence and hiring fell, while new orders remained steady, suggesting supply issues, not demand decline, but uncertainty looms due to high energy prices and the war.

China

China’s manufacturing PMI reached 50.8 in March 2026, signaling steady expansion for the fourth month. Demand and production continued to grow, though at slower rates, with job creation rising. However, input prices surged, and supply chain disruptions worsened. Despite challenges, manufacturers remained optimistic, supported by government policies and market demand, though rising oil prices and geopolitical tensions pose ongoing risks to costs.

United Arab Emirates (UAE)

The UAE PMI in February indicated the strongest non-oil business growth in a year, driven by increased output and strong new orders. The outlook remains positive, with demand pushing for more capacity and job growth. Supply chains improved, helping firms rebuild stocks, and input cost inflation slowed, easing concerns.

Tags: Update