Dear Valued Customer,
In light of the recent developments in the Middle East, our thoughts are with all those affected.
Eaton has been proactively assessing potential impacts on our supply chain operations, and take this opportunity to advise that you may experience global supply chain disruptions due to escalations in the Middle East region:
- Longer lead times and revised ETAs
- Carrier-imposed surcharges or schedule changes
- Reduced schedule frequency or transhipment on certain routes
These consequences result from disrupted global logistics and heightened demand for limited capacity in the region. The current status of logistics in the Middle East is as follows:
- Air: Parts of the Gulf are operating on reduced, pre-approved schedules with selective cargo acceptance; Muscat (Oman) is functioning as a key diversion hub though capacity is tight.
- Ocean: Multiple carriers have suspended transits via the Strait of Hormuz and may discharge at alternate ports, which can add transhipment time and cost; booking acceptance is case-by-case, and war-risk surcharges are being applied by several lines. Red sea routes are re-diverted where major carriers are routing via the Cape of Good Hope as Houthi threats resurface, increasing distance and time.
- Road & Facilities: GCC road flows are currently not affected; contract logistics sites in the UAE and Saudi Arabia remain operational with safety measures in place.
- Insurance: Regional carrier insurers issued a 7-day Notice of Cancellation for War/Strikes/Riots/Civil Commotion perils (effective 1 Mar 2026) across key corridors; coverage is being reinstated case-by-case with revised rates.
Eaton is closely monitoring the situation as and when it changes. Please be assured that minimising interruptions to your business operations is our priority. Here are some of the actions that Eaton is taking:
- Rerouting shipments and diversifying carriers where feasible
- Securing additional capacity and evaluating mode shifts (sea/air/express) for critical orders
- Where able increasing safety stock in regional distribution centres and adjusting allocation plans
- Monitoring conditions in real time, including port congestion, air hub throughput, lead-time changes and regulatory updates
- Expediting documentation and customs clearance where possible
How you can minimise impacts to your business operations
- Please review your order forecasts and consider if you need to order earlier. We recommend any time critical order be placed earlier and flag with Eaton so we can prioritise accordingly
- Where possible, consider increased local stock holdings, particularly of critical parts
- Use your usual order tracking portal or contact our customer service for shipment specific updates
- If sensitive timelines have been communicated, Eaton will evaluate alternative flexible transportation options, such as sea-air combinations or different gateways, and provide recommendations accordingly.
We are committed to minimizing any disruptions to your operations and will ensure timely communication regarding any changes to your orders. We value your understanding and ongoing partnership, and we remain fully dedicated to supporting your business and keeping you informed as circumstances evolve.
Best Regards,
Amanda Gearry,
Operations Director ANZ
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