Middle East Conflict Restricts Cargo Routes

   The major ocean container lines are unlikely to re-open the Red Sea/Suez Canal route as Israel and Iran continue to wreak conflict.

   Iran's parliament is considering closing the Strait of Hormuz to ships as a way to exert economic pressure on Israel and its allies. The Strait of Hormuz, a narrow sea passage between Iran and Oman, is a trade gateway for global container shipping and a passage for 20% of the world's crude oil supplies shipped by tanker from the Persian Gulf.

The waterway was last closed during the Iran-Iraq war in 1984.

   Ship-tracking websites show that marine traffic, including container ships owned by Mediterranean Shipping Co., Evergreen and Seaspan, continues to pass through the Strait of Hormuz.

   The U.K. Maritime Trade Operations Office (UKMTO), which monitors shipping in the Middle East, said heightened tensions in the region "could lead to an escalation of military activity with direct impacts on seafarers, and ships are advised to exercise caution when transiting the Arabian Gulf, Gulf of Oman and Strait of Hormuz."

Airlines are canceling and rerouting flights due to the potential risk of missile attacks.

   Many flights between Asia and Europe are being rerouted further south over Saudi Arabia and Egypt, according to multiple news outlets. Airlines have also suspended flights to Tel Aviv, Israel, and Tehran, Iran.