UPDATE ON THE SITUATION IN THE MIDDLE EAST
Falcon is closely monitoring the security situation in the Middle East and the impact this is having on transportation networks. Persistent airstrikes in multiple countries over the past two weeks have led to airspace closures over large segments of the region. This is a dynamic situation in which airspace restrictions are occurring with little to no prior notice, leaving carriers to make hour-by-hour decisions on flight operations. Numerous airlines are experiencing delays, cancellations, diversions, and outright service cancellations to the region as a result of the war.
Flight Schedules
Neither Falcon nor the airlines have control over flight schedules in this environment. Airlines are adjusting operations on an hour-by-hour basis depending on the security situation in each country. Countries effected include Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Saudi Arabia, Syria, the United Arab Emirates, and Qatar.
Rates
Due to market dynamics and carrier restrictions, quotations involving services in the Middle East are subject to change at any time until further notice.
Insurance
Due to daily, kinetic military operations throughout the region and the subsequent risk of property damage/loss, we are strongly recommending insurance on all shipments to and from the Middle East. This applies to both airfreight and seafreight. Please contact our pricing teams for a quote.
Outlook
A direct military conflict between Iran and Israel is unprecedented, and the direction this conflict will take the region is unpredictable. What we do know is that this conflict has been fluid, with quick cycles of escalation and de-escalation. While a ceasefire is in place as of Tuesday afternoon New York time, less than 24 hours prior much of the Arabian Peninsula was on high-alert for imminent attack from Iran.
In the event of an escalation, transportation infrastructure would be put at high risk. Missile attack volleys trigger airspace closures, which effect flight operations throughout the region.
Iran’s proxies in Yemen have proven capable of attacking commercial shipping in the Red Sea during earlier episodes in this crisis. Iran itself has also signaled its willingness to close the Strait of Hormuz in the event of a regional conflict. Either scenario would have an impact on maritime shipping operations in the region, leading to diversions and service suspensions. Either would also put the physical security of crews, shipping assets, and cargo at risk.
Our teams in the United States and the Middle East are monitoring this situation on a continuous basis. We are advising our clients based on the best information available to us each day, and will continue to do so.
The safety of our personnel, our assets, and the cargo we are trusted with are our highest priorities.