Middle East Crisis – Weekly Partner Update

The situation in the Middle East remains extremely volatile and continues to disrupt global logistics. Conditions can change from one day to the next, so the information below is based on the latest updates available. We will keep sharing a recap every week, and we’ll send extra updates if anything important shifts.

1. Global Context

The conflict in the region is affecting international supply chains. The closure of the Strait of Hormuz, repeated attacks on commercial vessels, and multiple carrier suspensions have caused delays and reroutings.

Many carriers are now passing around the Cape of Good Hope, adding 10 to 15 days of transit time. Some ports stay operational, but with high risk levels, congestion, and capacity shortages.

This instability also impacts global markets, with strong fluctuations in oil, gas, and fertilizer prices, which in turn add pressure on transport costs and overall supply reliability.

2. Operational Update

Expeditions
Departures toward Syria, Yemen, Lebanon are still taking place despite the difficult context.

Surcharges & Pricing
Export surcharges keep rising with updates coming every 1 to 2 days.

Maritime Examples

Sierra Leone – 40’ dry container
Before the crisis: 3 331.69 €

Now: 5 140

Increase: +54 %

3. Import Situation

(it may affect the availability of our products in stock and potentially their purchase price)

Air Freight

• Air freight is still running, but at a slower pace due to critical capacity constraints.

• Many flights are rerouted via FRA and CDG, adding more pressure.

• Airfreight prices have increased sharply:

Before: 4 €/kg

Weeks 1 & 2: 7.5 €/kg

This week: 18 €/kg

Sea Freight

No freight rate increase so far. But significant delays due to limited capacity.

4. Purchase

Mosquito nets (price increase possible in between 30 and 50 % depending on supplier)

To mitigate the current and potential impacts of the crisis, several actions are already underway:

• In coordination with CDSP from the OCB Supply Chain and the Medical Department, a plan is being reviewed to increase stock levels by +3 to +6 months where feasible.

• From a procurement perspective, several suppliers have already announced price increases (e.g. Ancel – work gloves: +10% to +50%). Supplier Orders anticipation is being reinforced to limit exposure to further price increases.

• A switch between Asian and European sourcing is being assessed on a case by case basis to identify the most relevant and resilient options.

• An analysis is ongoing regarding price indexation linked to raw material volatility; when increases are not aligned with market reality, these will be challenged with suppliers.

APAC and SASH Team from Asia have developed a first version of Market intelligence on IRAN crisis that will be shared to supply chain/procurement community every 2  weeks:

• The Iran conflict is sharply increasing transportation, energy, plastic raw materials, and API costs across Asia, with the strongest shocks linked to Strait of Hormuz disruptions.Freight rates have risen materially (up to +99% on Persian Gulf/Red Sea routes), directly feeding inflation into goods and medical supply chains and resulting in longer and less predictable lead times.

• Energy price pressure is uneven by country: governments are cushioning retail prices via subsidies, but buyers face rising fuel, gas, and logistics costs, 

• Plastic resins and petrochemical inputs are surging (often +30–70%), with Asia remaining a critical—and difficult to replace—global supplier base for the time being, 

• The Procurement/Replenishment community is reacting defensively: accepting short term price hikes, building buffer stocks, anticipating constraints where possible, and warning of supply and lead time risks rather than expecting quick normalization; alternative sourcing options are still under analysis. The referenced indexes will support buyers in challenging supplier price increases.