Middle East Tensions Raise Fuel Costs, However Suez Services Return

Fuel surcharges look set for another round of increases following rising tension in the Middle East, yet at least one carrier alliance is pushing ahead with plans to return more services to the Suez Canal.

Brent crude has climbed above $100 per barrel amid the escalating tension and concerns surrounding both oil production and the routes used to transport it.

Recent Houthi advances and attacks in the region have added to uncertainty around the Bab el-Mandeb Strait and Saudi Arabia’s Red Sea oil infrastructure. These developments come alongside continuing disruption around the Strait of Hormuz, maintaining pressure on global energy supplies.

Pump prices and fuel surcharges typically lag behind crude oil movements, meaning further increases across ocean, air and road freight may follow during the coming days and/or weeks.

Despite this increasingly uncertain backdrop, the Gemini Network has surprisingly confirmed plans to return four more Asia–Europe services to the Suez Canal.

The first vessel scheduled to switch from the longer Cape of Good Hope route departs from Asia on 19 September, while two of the returning services include direct calls at ports in the UK.

This is certainly an interesting and significant development, and one the Westbound team will be keeping a close eye on. It has been almost three years since Houthi attacks on commercial shipping led to diversions around Africa, and the Suez route usually shortens Asia–UK transit times by around 10-14 days.

However, the decision also brings vessels closer to the recent instability around Yemen and the southern Red Sea, with any further escalation potentially forcing the network to reconsider their plans.