Middle East Conflict: What Importers Need to Know About Current Supply Chain Risks

The conflict involving the United States, Israel, and Iran is reshaping global freight routes at speed, and importers are feeling the effects through longer transit times, unexpected costs, and shifting insurance conditions. With air and sea carriers adjusting operations daily, the environment is volatile and requires close attention from anyone moving goods internationally.

This blog outlines what importers should expect, where the biggest risks sit, and how to protect shipments during this period of uncertainty.

How the Conflict Is Disrupting Cargo Movements

Carriers are making rapid operational changes to avoid high‑risk areas. These adjustments are already affecting importers in several ways:

• Rerouted vessels and diverted flights — Ships may bypass the Middle East entirely or discharge cargo at alternative ports. Airlines are adjusting flight paths or suspending services.
• Longer transit times — Deviations around conflict zones add days or weeks to schedules.
• Reduced capacity — Some carriers are limiting services or temporarily withdrawing from affected corridors.
• New surcharges — War‑risk and operational surcharges are being applied to bookings to and from impacted ports and transhipment hubs.

These impacts apply to cargo already on the water or in the air, as well as future shipments.

Why Carrier Liability Is Limited During Conflict

Importers should be aware that carriers, NVOCs, and freight forwarders are generally not liable for loss, damage, or delay caused by acts of war. As explained by Iain Sharples of SALT Marine, exclusions typically apply under:

• Bills of lading and air waybills (including house documents)
• International conventions such as the Montreal Convention and Hague‑Visby Rules
• Standard trading conditions

This means that if cargo is delayed, rerouted, or discharged at an alternative port due to security concerns, carriers are usually not responsible for the resulting costs.

Importers may need to arrange and pay for onward transport if cargo is unloaded at a port other than the intended destination.

Marine Cargo Insurance: The Most Important Area for Importers

Marine cargo insurance is where importers face the greatest exposure. Key points to understand:

• War‑risk cover can be cancelled with 7 days’ notice once a conflict begins. This does not affect cargo already in transit, but it does affect future shipments.
• Cover may be reinstated with higher premiums or exclusions for designated high‑risk areas.
• The Joint War Committee (JWC) in London regularly updates its list of high‑risk zones. Areas near Iran linked to Houthi activity are currently designated, and this may expand.

Because insurers adjust their risk appetite quickly during conflict, importers should confirm their coverage before booking cargo, especially if routing involves the Middle East or nearby waters.

Freight Forwarders Liability (FFL) Insurance: What It Means for Importers

Some Freight Forwarders Liability policies contain war‑risk exclusions, meaning forwarders may not be insured for liabilities arising from war‑related cargo loss or damage. In some cases, coverage may still apply if the cargo entered transit before the region was considered a conflict zone, but this depends entirely on policy wording.

For importers, this reinforces the importance of having their own marine cargo insurance in place, rather than relying on a forwarder’s liability cover.

Why War‑Risk Surcharges Don’t Require a Declaration of War

A common misconception is that war must be formally declared for war‑risk surcharges or exclusions to apply. This is not the case.

Insurance contracts define “war risks” independently. Typical clauses cover:

• War, civil war, rebellion, or hostile acts
• Capture, seizure, arrest, or detainment
• Derelict mines, torpedoes, bombs, or other weapons of war

Insurers and carriers rely on risk assessments, not political declarations, when applying surcharges or adjusting coverage.

What Importers Should Do Now

To navigate the current environment, importers can take several practical steps:

• Confirm your insurance position — Check whether your marine cargo policy includes war‑risk cover and whether any exclusions apply to current routes.
• Expect variable ETAs — Ask your forwarder for ETA ranges rather than fixed dates, and ensure all timing caveats are documented.
• Budget for additional costs — War‑risk surcharges, deviation charges, and onward transport from alternative ports may arise.
• Stay informed about routing — Vessel ownership, flag, and routing can affect insurability; request updates from your forwarder.
• Document all communication — Clear records help avoid disputes if delays or additional costs occur.

The Bottom Line for Importers

The Middle East conflict has introduced significant unpredictability into global freight networks. While forwarders are working to manage disruptions, importers carry the greatest financial exposure, particularly around insurance and additional transport costs.

Understanding your coverage, staying informed about routing changes, and maintaining close communication with your forwarder are the most effective ways to protect your supply chain during this period.

Get in touch with our team if you have any concerns or questions.