Breaking news…
The impact of the escalating Middle East conflict has now gone beyond the regional issue. Several flights have been delayed, even to the point of a complete stoppage, to the Persian Gulf countries. Reports are circulating that the Strait of Hormuz will be closed to shipping, and maritime traffic with several transit countries may be affected.
Tariff forecasts in this update will be adjusted as market participants gain a better understanding of the situation. Specifically, we anticipate that shipping costs from China to Russia will increase for container and road freight, and border delays are possible due to the redirection of European traffic to direct rail and road.
Container turnover due to longer delivery times will likely lead to an increase in container usage rates.
WELLGO specialists are closely monitoring the situation, coordinating with their partners to maintain supply chain stability and obtain reliable information about goods in transit and carrier plans.
Due to the escalation of the Middle East conflict, reports have emerged of the closure of several seaports in this area, including Jebel Ali, and there are reports of a possible complete closure of the Strait of Hormuz to shipping. WELLGO specialists are closely monitoring the situation.
The situation on the Türkiye-Russia route remains stable for now, but we expect an increase in airfares and a possible shortage of capacity due to the cancellation of flights by Middle Eastern air carriers and the redistribution of cargo flows to the Turkish route.
All flights to Dubai are currently cancelled. We are monitoring the situation and will keep you informed of any changes.
Currently, the air transport market from India to Russia continues to experience a shortage of transport capacity. Due to the cancellation of flights via the Middle East, we expect possible price increases on alternative routes and capacity shortages.
An additional pressure factor in February was the cancellation of Volga-Dnepr Airlines' direct flight from Mumbai. There is currently no information regarding the program's resumption. Despite operating only once a week, the flight was reliable and played a vital role in transporting large shipments, oversized cargo, and hazardous cargo classified as CAO. Transit routes remain an alternative, but access to some of them is limited, restricting the actual choice of available options.