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Iran conflict hits NZ meat and seafood exports to Gulf states, more disruption expected

Tuesday, 3 March 2026

The International Federation of Freight Forwarders Associations says war-risk insurance premiums are rising sharply, adding costs for importers and exporters.
The International Federation of Freight Forwarders Associations says war-risk insurance premiums are rising sharply, adding costs for importers and exporters.

Turmoil in the Middle East is affecting Kiwi exports to the Gulf states but doesn’t appear to be having a major impact on freight traffic to Europe, information provided by industry bodies suggests.

The Geneva-based International Federation of Freight Forwarders Associations (Fiata) said some ships had cancelled sailings or diverted from the region, and war-risk insurance premiums and related surcharges were “rising sharply”.

If traffic continued to be redirected away from conflict zones, alternative ports in the Middle East and Asia could experience significant congestion, “further disrupting schedules and capacity availability”, it said.

A spokesperson for the Meat Industry Association said the closure of the Strait of Hormuz and disruptions to shipping through the Red Sea — the route to the Suez Canal — would primarily affect chilled meat exports to the Middle East, which were worth $166 million last year.

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“As the situation is changing rapidly, red meat exporters are still assessing the full impact on their trade to the region,” he said.

Exporters shipped red meat to the United Kingdom and Europe both via the Red Sea, or around Africa, he said.

Seafood NZ spokesperson Nirupa George said there were “a small number of seafood consignments currently on the water” in the Gulf region, primarily en route to Saudi Arabia and the United Arab Emirates.

“The companies involved are working directly with their shipping lines and local agents to understand their options and manage any potential disruption,” she said.

“Some consignments that were being prepared for shipment have been placed on hold. Most shipping companies servicing the region have temporarily suspended new bookings while they assess the situation and any associated risks.”

Although New Zealand does not export seafood to Iran, exports to the Gulf region have grown in recent years, to value about $20m last year, George said.

The difficulties faced by companies exporting to Europe may not be as great as they were in 2024, when exporters were faced with the double headache of threats to shipping in the Red Sea from Houthi rebels in Yemen and a drought that restricted the number of ships that could pass through on the Panama Canal.

Zespri said the Panama Canal was its main shipping route to Europe.

Water levels in Lake Gatun, which feeds the canal, have recovered to about their normal level and the canal has been operating without drought restrictions since the middle of last year.

Airports in the Gulf states remain largely closed, impacting air freight to the region, though some flights were being allowed to leave Dubai on Tuesday afternoon, New Zealand time, to destinations including London, Paris and Moscow.

Customs Brokers and Freight Forwarders Association chief executive Sherelle Kennelly said on Monday that its members were seeing “significant operational disruptions across both air and sea freight”.

But the dominant route for air freight to Europe was via Singapore, she said.