Your Balikbayan Box May Be Delayed: Here’s What’s Happening
Cargo shipments from the UAE to the Philippines have stalled as the Strait of Hormuz crisis disrupts shipping routes and drives up freight costs.
If you’re waiting for a balikbayan box from Dubai, you may need to be a little more patient.
Cargo shipments bound for the Philippines have slowed down or completely stopped as tensions in the Middle East disrupt shipping routes, particularly around the Strait of Hormuz.
According to the president of the League of Freight Forwarders (LFF), many containers are currently stuck in warehouses because shipping companies have halted departures due to security risks in the region.
Container shipments currently on hold
Rumelyn Dorado Aribon, president of the 10-member League of Freight Forwarders, said cargo movement has essentially stopped for now.
“Wala pong movement ngayon ng mga containers,” she said, explaining that shipments are not being loaded while the situation remains uncertain.
Shipping companies have already suspended departures scheduled for March 9 and March 16, leaving many balikbayan boxes waiting in storage facilities instead of being shipped out.
Forwarders say they are taking a wait-and-see approach, similar to other industries affected by the regional crisis.
War risk surcharge drives up shipping costs
The conflict has also triggered a new war risk surcharge of $3,500 per container imposed by shipping companies.
This fee must be paid before cargo can leave the port in the Philippines.
Because of the sudden increase in costs, cargo forwarders have temporarily raised their rates by 15% to 20%, depending on the box size and destination.
Boxes stored in warehouses for now
Instead of sending the containers to Dubai’s port, freight companies have decided to keep the balikbayan boxes in their warehouses for the time being.
Aribon explained that once containers enter the port, additional storage charges start accumulating daily, which would further increase the overall shipping cost.
For now, the boxes remain stored safely while companies wait for shipping routes to reopen.
Shipping companies avoiding the Strait of Hormuz
Shipping companies are currently hesitant to send vessels through the Strait of Hormuz, a key shipping route between Iran and Oman.
The narrow waterway is one of the world’s most important maritime passages, but it has become a high-risk zone due to the ongoing conflict.
Shipping companies fear massive losses if vessels are attacked while passing through the area.
Some operators are exploring alternative routes through other ports such as Salalah in Oman, though these options would add extra costs.
Balikbayan boxes not a priority shipment
Another factor slowing shipments is cargo priority.
According to Aribon, balikbayan boxes are considered low priority compared to perishable goods, which shipping companies prioritize to avoid spoilage.
Dubai’s ports process around 2.5 million containers every month, while freight forwarders handling balikbayan boxes ship roughly 250 containers monthly.
For now, thousands of boxes meant for families in the Philippines remain in warehouses — waiting for shipping routes in the Middle East to stabilize.