Middle East Disruption Impacting Global Air and Ocean Freight

Due to the ongoing security situation in parts of the Middle East, air and ocean logistics services to, from, and via the region are subject to significant disruption. Current conditions include airspace restrictions, airport service interruptions, carrier suspensions, and disrupted maritime movements, including severe operational constraints around the Strait of Hormuz.

What customers should expect

• Flight suspensions and cancellations, reduced uplift, and limited connection integrity via Middle East hubs
• Ocean schedule disruption, vessel holding patterns, and longer transit times due to routing changes and safety considerations
• Delays, backlog risk, and short-notice operational changes across affected trade lanes
• Increased lead times and capacity restrictions that may also affect non Middle East lanes, as aircraft and vessels are rerouted, cycle times lengthen, and capacity is displaced across global networks

Rates and surcharges
Due to the rapidly evolving situation, customers should anticipate potential rate increases and the implementation of special surcharges. Depending on routing, exposure, and carrier requirements, these may include, but are not limited to:

• War Risk Surcharges and war-risk premium adjustments
• Emergency or conflict-related surcharges
• Fuel and bunker-related surcharges driven by higher energy costs and longer routings

Recommended customer actions

• Confirm serviceability with KWE before tendering new shipments to, from, or via the impacted region
• Allow additional lead time and plan for alternative routings where feasible
• For time-critical cargo, discuss prioritization options with your KWE contact, including alternative gateways and contingency routing

KWE continues to monitor the situation closely and is working with carriers and partners to minimize disruption where possible. For shipment-specific support, please contact your local KWE representative.

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DISCLAIMER: The subject matter of this announcement is provided for informational purposes only. Any and all data is obtained from internal and external sources believed to be true and accurate at the time of publication; however, information may not be comprehensive and is subject to change without notice. Forward-looking statements derived from such data should not be taken as guarantees of future performance, nor should they be relied upon as fact. KWE is not responsible or liable for any inaccurate or incomplete information contained herein and is under no obligation to update forward-looking statements except as required by applicable securities laws.