The current supply chain crisis caused by the instability in the Middle East is disrupting Mediterranean feeder services and, consequently, inland transport in Europe. While feeder services are maritime, they directly influence rail and road transport by affecting when and where containers become available for onward inland movement.
“The main impact on Mediterranean feeder routes is reduced reliability, with blank sailings, port omissions, and irregular arrivals. This creates cascading effects on European ports and rail systems, where congestion and timing mismatches increase dwell times and reduce efficiency”, said Andrea Monti, CEO of Italy-based container logistics provider Sogese.
Rippling effect
The company recently published its first monthly update on the European container market, which highlighted how feeder connections in the Mediterranean are becoming critical constraints. These are services connecting larger ports on the Mediterranean Sea to smaller regional ones all across Europe.
The current disruptions are causing longer and unpredictable transit times, additional costs for demurrage and storage and equipment imbalances, Monti pointed out. “The core issue is not capacity shortage, but loss of operational timing and network stability”, he added. In other words, it is all about the timing mismatches: if a ship arrives late, it causes a rippling effect across the whole supply chain.
Is there an end in sight?
Given the current circumstances, it is hard to predict when things will go back to normal. The Strait of Hormuz, between Iran and Oman, continues to remain closed. A ceasefire between the US and Iran was signed yesterday and included the reopening of this corridor, used to move 20% of the world’s oil. However, Israeli attacks on Lebanon led Iran to close it again just a few hours later.
This uncertainty leaves little room for optimism, as the situation has been unstable since the end of February. Moreover, Hormuz is not the only key strait in the Middle East that has caused instability in the past years. Since 2023, the strait of Bab-el Mandeb, linking the Indian Ocean to the Mediterranean via the Suez Canal, has been under stress due to tensions between the US and the Houthi in Yemen.