The global Corporate Moving market has entered a renewed period of disruption. The ceasefire arrangements that had briefly stabilised shipping through the Strait of Hormuz have broken down, carriers have reintroduced booking suspensions and emergency charges across parts of the Gulf, and container freight rates remain close to their highest level since September 2024. UK port congestion is adding further pressure on vessel bookings for household goods shipments. Businesses should continue planning ahead, remain flexible and work closely with experienced relocation providers to manage changing market conditions.
Middle East ceasefire breaks down as Strait of Hormuz disruption intensifies
The positive progress reported in our previous update has since slowed. During the first half of July, tensions in the region increased again, with new security incidents, disruptions to commercial shipping and ongoing differences over arrangements relating to the Strait of Hormuz. The situation was further affected by new measures announced by the United States on 10 July, followed by additional restrictions affecting Iranian shipping from 13 July. As a result, the operating environment has become more uncertain, with continued challenges for regional trade and logistics.
Commercial transits through the Strait of Hormuz have fallen sharply once again, with significant numbers of vessels waiting outside or avoiding the affected area as operators assess conditions. War risk insurance costs have risen sharply and some insurers have reduced or withdrawn vessel-related cover for parts of the region. Customers should continue to expect shipments to and from Gulf destinations to face delays, rerouting and additional costs, with conditions changing at short notice.
Carriers reintroduce booking suspensions and emergency charges
Following the renewed escalation, major shipping lines have expanded operational restrictions across the Gulf. Dry cargo booking suspensions have been introduced on selected routes serving Iraq, parts of the UAE and the Saudi ports of Dammam and Al Jubail. Services to several other Gulf destinations remain available, although capacity, routing and service availability continue to change as carriers adjust their networks.
Emergency freight charges have also been introduced across parts of the region, increasing transport costs for cargo moving to and from affected Gulf ports. Restrictions on empty-container returns and revised depot arrangements are also contributing to additional operational costs in some locations.
Household goods shipments, which move as dry cargo, are directly affected by these restrictions. Customers should expect reduced booking availability into affected Gulf destinations, increased use of transhipment hubs and landbridge services and additional charges that may be applied at various stages of the shipment.
Freight rates remain close to a 22-month high
Container freight rates remain elevated. Drewry’s World Container Index reached US$4,639 per 40-foot container on 9 July, its highest level since September 2024, before easing by two per cent to US$4,547 on 16 July. Rates continue to be supported by vessel diversions, capacity constraints and early peak season demand.
War risk premiums and carrier emergency surcharges on Gulf-linked routes continue to add significant cost pressure. Quotations prepared before mid-July may no longer reflect current market conditions, and customers should expect freight rates and carrier surcharges to change with little notice.
UK port congestion affects vessel bookings
Congestion at UK ports is compounding the difficulty of securing vessel bookings for household goods shipments. The British Association of Removers reported in its 1 July Global Shipping Conditions update that congestion at Felixstowe and Southampton was contributing to vessel delays while high levels of global port congestion continued to restrict available capacity.
The omission of Middle East port calls on some Asia services is reducing capacity into the region. Services that continue to call at affected ports remain heavily utilised, while void sailings introduced as carriers realign their networks are creating further backlogs. Customers moving from the UK to the Middle East should allow longer lead times to secure bookings, prepare for possible transfers to alternative sailings and recognise the risk of containers being rolled to later vessels.
Strategic recommendations for businesses
Businesses with shipments into the Middle East should review quotations issued before mid-July, as carrier restrictions, emergency freight rates and changing market conditions may have materially affected transport costs. Additional contingency should be allowed for freight costs, transit times and carrier surcharges, and customers should be prepared for bookings to be transferred to alternative services at short notice. Shipments from the UK should be booked as early as possible given ongoing port congestion and constrained vessel capacity, while organisations with moves into Venezuela should continue to monitor port recovery timelines and port operating status before confirming shipment plans. Working closely with an experienced relocation provider will help organisations remain flexible and respond quickly as conditions evolve.
Santa Fe continues to monitor shipping conditions, carrier restrictions and port operations across the affected markets. Clients requiring support with current or planned shipments should contact their designated Santa Fe Relocation consultant.
Parmis Ershadpour
Managing Director Middle East
Santa Fe Relocation
parmis.ershadpour@santaferelo.com