No material interruption to Mid-East operations, says air cargo handler SATS
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Smoke rises above the city of Riyadh, Saudi Arabia, amid the US-Israeli conflict with Iran, on March 5.
PHOTO: REUTERS
SINGAPORE – Unprecedented airspace closures in some Gulf states
Since the US-Israel war on Iran began on Feb 28, operations at SATS’ Middle East stations in Saudi Arabia and Oman have been continuing under “appropriate” safety and security protocols, said SATS in a statement on March 6.
Its staff in the region – including Singaporeans who have been deployed there – are safe, said the Singapore-headquartered company.
The company said it is “closely monitoring” the Middle East war, and is “deeply concerned” about the unprecedented airspace closures in some Gulf states that are affecting the global air cargo supply chain.
While flight disruptions may temporarily delay some shipments, air cargo typically moves through alternative routes as supply chains adjust, it said, adding: “SATS’ global presence positions our network to mitigate or manage supply chain disruptions, and to serve changing trade flows.”
The company is in “close” contact with its airline customers and will continue to adjust its operations in line with how trade lanes evolve, SATS added.
Facilities in Saudi Arabia and Oman – where the airspace remains open – can be alternative gateways to Gulf Cooperation Council (GCC) countries affected by airspace closures, it said.
SATS is “ready” to support the flow of emergency supplies from air hubs in Saudi Arabia and Oman to GCC countries, it added.
The GCC countries are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Some of these countries have been caught in the crossfire.
Conflict-driven disruptions – such as the US-Israeli war against Iran – tend to make shipments more expensive. This historically supports a shift to air cargo, which offer faster deliveries compared with land or sea transportation, SATS said.
Since the war, the Strait of Hormuz – a critical passage linking the Persian Gulf to the Indian Ocean and a key route for global oil trade – has been effectively shut down
Around 20,000 seafarers and 15,000 cruise ship passengers
The Strait of Hormuz, Gulf of Oman and Persian Gulf have also been designated as a “warlike operations area” by it.
Faster reaction times for air cargo make it a preferred method for moving time-critical shipments in a quickly evolving environment, SATS said, noting that there is “robust demand” for e-commerce and specialised cargo services such as pharmaceuticals, temperature-sensitive and time-critical/express cargo in the Middle East.
Air cargo volume in SATS’ Saudi Arabia stations comprise a small part of its global tonnage, it said, despite a 12 per cent increase in air cargo volume handled there from 2024 to 2025.
