Middle East Crisis: War Risks to International Shipping Explained

Middle East Crisis: Risks to Shipping

With the Strait of Hormuz now effectively closed, some ocean carriers are using rules that haven’t been widely applied in decades. Most importers have never had to think about the “liberties clause” in a bill of lading. This clause — rooted in maritime law from the 1800s and formalized under the Hague Rules — gives shipping lines the right to divert or delay voyages, or discharge cargo at a completely different port when continuing the journey becomes unsafe. Right now, that’s exactly what’s happening.

Major ocean carriers including MSC, Maersk, CMA CGM and Hapag-Lloyd are now invoking this clause as security risks escalate in the region. Instead of completing voyages into the Arabian Gulf, some vessels are declaring ‘end of voyage‘, and offloading containers at alternative safe ports. Cargo owners must then arrange onward transport themselves.

What this means in practice: 

  • Containers may not arrive at the port listed on the booking
  • Cargo may land hundreds of miles from its destination
  • Shippers pay all additional costs — re-transport, storage, and handling
  • Emergency surcharges are rising rapidly across trade lanes

Air and Ocean Carriers Increasing Surcharges

Both air and ocean carriers are raising fuel surcharges and adjusting them more frequently. Carriers are also announcing war risk surcharges — and not only for Middle East destinations.

War Risk Insurance Cancellations Issued

In the past two weeks, many insurance companies have issued formal Notices of Cancellation for War, Strikes, Riots, and Civil Commotions coverage. Rapid escalation of tensions in the Middle East — including direct conflict involving Iran and disruptions in key maritime corridors — is driving these cancellations.

The cancellations primarily affect cargo moving to, from, or within these high-risk regions:

  • Persian/Arabian Gulf
  • Gulf of Oman
  • Gulf of Aden
  • Red Sea
  • Certain defined Indian Ocean boundaries
  • Exposures involving Iran, Israel, Lebanon, Bahrain, UAE, Djibouti, Kuwait, Oman, Qatar, Jordan, Syria, Saudi Arabia, and Yemen

ACS works with leading insurance markets to provide war risk coverage options even in challenging conditions. If you have an upcoming shipment to any of these areas, contact us — we may be able to arrange alternative protection.

Questions about how these disruptions affect your shipments? Contact ACS at info@acssan.com or (858) 565-4125.


New Import Tariffs Effective February 24, 2026: What Changed

Tariff Changes Taking Effect February 24

What the Supreme Court Decision Changed

On February 20, the U.S. Supreme Court struck down the Trump administration’s use of tariffs under the International Emergency Economic Powers Act (IEEPA). As a result, President Trump signed an Executive Order titled “Ending Certain Tariff Actions,” directing the immediate termination of these tariffs. Consequently, CBP stopped collecting these duties on all goods entered for consumption on or after 12:00 a.m. ET on February 24, 2026.

Section 122 Import Surcharge — What It Covers

Also on February 20, President Trump signed a Proclamation invoking Section 122 of the Trade Act of 1974. This action imposed a temporary 10% ad valorem import duty on most goods entering the United States, effective February 24 at 12:01 a.m. ET. The surcharge runs for 150 days. Importantly, this 10% is in addition to the standard published duty rate for each commodity.

In addition, over the weekend the President announced on social media that he would raise the rate from 10% to 15% — the maximum under Section 122. However, that increase has not yet officially taken effect.

Key Exclusions from the Section 122 Duty

Notably, several categories are exempt from the Section 122 surcharge:

  • Certain critical minerals, metals, energy, and energy products
  • Natural resources and fertilizers not producible domestically in sufficient quantities
  • Certain agricultural products (beef, tomatoes, oranges)
  • Pharmaceuticals and pharmaceutical ingredients
  • Certain electronics
  • Passenger vehicles, certain trucks, buses, and certain vehicle parts
  • Certain aerospace products
  • Informational materials (e.g., books), donations, and accompanied baggage
  • All goods subject to Section 232 actions
  • USMCA-compliant goods of Canada and Mexico
  • Certain CAFTA-DR textile and apparel goods

Where Do IEEPA Refunds Stand?

Despite the Court’s ruling, importers should not expect automatic refunds. The Supreme Court did not address the question of refunds in its decision. Here is what we know at this time:

  • No new developments have emerged regarding potential tariff refunds
  • The Court has not established a timing or mechanism for processing any refunds
  • The government may appeal any future Court decision, which could result in lengthy and uncertain litigation

As always, American Cargoservice is committed to keeping our customers informed. We will continue to monitor the situation and send updates as they become available.

Questions about how these changes affect your shipments? Contact ACS at info@acssan.com or (858) 565-4125.


ISPM-15 Wood Packaging Enforcement Begins January 1, 2026

ISPM-15 marking requirements on wood pallets

Strict enforcement of ISPM-15 Marking coming January 1, 2026

Importers and exporters shipping goods on wood pallets or in wooden crates need to be aware of updated ISPM-15 marking requirements. Beginning January 1, 2026, CBP and APHIS began strictly enforcing the hyphen requirement in IPPC compliance marks — and noncompliant shipments face holds at the port of import.

If you are importing products into the U.S., you are most likely aware of the requirement for heat treatment and IPPC (marking of any solid wood packing materials such as pallets or crates.

However, you might not be aware of increased enforcement of proper IPPC marking requirements coming on January 1, 2026. Specifically, the requirement for a hyphen between the country code and the manufacturing facility number.

The ISPM-15 hyphen requirement is a component of the international standard that mandates a hyphen to separate the country code from the facility code in the compliance mark. In March, APHIS temporarily suspended enforcement of the hyphen requirement because so many shipments were arriving with no hyphen. 

Here is an example of the proper marking:

Beginning January 1, 2026, Customs and APHIS will resume strict enforcement of the marking requirements, specifically that the hyphen between the country code and the facility code. Shipments found not to be in compliance will be held at the port of import. Re-export will most likely be required, and penalties may be assessed.

If you are an importer, it would be a good idea to check with the vendor sending the shipment to confirm the IPPC markings on any wood packing materials meet the strict requirement before the goods are shipped. If you are sending out a shipment that will later be returned in the same packing, you might want to check the markings on your wood packaging materials before exporting them.

For more information about your options for noncompliant shipments click here.

Give us a call or email today to see how we can assist. As always, American Cargoservice is committed to providing valuable updates to our customers. We will continue to monitor the situation, and send out updates as they become available.