Global Mobility Insights from K2 Group, Q1 2026 - Part I

The Middle East Conflict

Despite ongoing challenges in the region, many mobility‑critical services remain operational, and supply chains are adapting through new routing strategies and strengthened security oversight.

Household Goods:

• There is significant disruption to sea freight due to the maritime blockade of the Strait of Hormuz.
• As of 22^nd March2026, major carriers have suspended all new bookings to and from the Persian Gulf. Household goods currently in transit are being diverted to other ports, with onward movement via road. Significant delays and additional costs should be expected.
• With the Houthis making their entry to the conflict over the 28^th March weekend, Red Sea shipping could be further impacted. However, most major carriers were already avoiding the Red Sea and the Suez Canal due to ongoing Houthi threats and renewed attacks earlier this year.
• Exports from the UAE are currently blocked, with shipments being packed and placed into storage until routes reopen. Alternative routing via Oman (Muscat Airport/Sohar Port and Salalah Port) is now being used for some shipments.
• Imports to the UAE are still possible via alternative ports with onward trucking.
• Freight rates and surcharges, including war risk and emergency conflict surcharges, are increasing.
• Security forces have successfully stabilised the air corridors and the movement of essential goods remains secure. However, air freight capacity has contracted by 21%, with regional carriers suspending specific routes, creating a significant backlog for high-priority shipments.
• The ‘East-West’ land corridors are under intense pressure: there are customs backlogs on the Oman-to-UAE corridor, and capacity is strained on the Saudi Land bridge.

‍Insurance Considerations:

Marine insurers have updated coverage relating to war, strikes, riots, and civil commotion. War‑related risks are now excluded for:

• Iran and territorial waters
• The Persian/Arabian Gulf, including the Gulf of Oman
• This applies only to conflict‑related perils. Standard insured risks outside these territories remain unchanged.

Note: Shipments on land/in storage destroyed by acts of war have never been covered under standard policies.

‍

Destination Services:

• Services remain fully operational in in locations such as the UAE, Jordan and Egypt.
• Several countries have suspended housing tours and in-person services due to movement restrictions or safety concerns.
• Immigration systems remain largely functional, though delays are expected for biometrics, medicals and in-person appointments.
• Some governments are operating remotely or with reduced staffing, impacting processing times.
• Case-by-case handling is required in higher-risk locations such as Israel and Iraq.

‍

Temporary Accommodation & Corporate Travel:

• Commercial flight availability remains the main constraint due to airspace closures and reduced airline schedules.
• Limited airline operations continue, with repatriation flights being prioritised.
• There are an increasing number of expats exiting the region via Oman, using road transport and flights from Muscat.
• Some countries are organising evacuation flights through embassies.

UK Housing Legislation

From 1^st May 2026, the Renters' Rights Act in the UK will give tenants new rights and introduce new rules for private landlords. These new rules will apply to everyone with an Assured Shorthold Tenancy, even if the landlord does not update the existing tenancy. All tenancies will become rolling tenancies, also known as Assured Periodic Tenancies: typically, they will roll month to month, with tenancy end dates no longer applying. An Assured Periodic Tenancy will continue until one of the below three things happens: 

• There is a mutual agreement between landlord and tenant to end the lease. 
• The tenant serves notice to end the lease. 
• The landlord has a valid legal reason to end the lease. 

‍

Rent Review Clauses will no longer apply. Landlords will be able to increase the rent once a year, but they must a) follow Section 13 of the Housing Act 1988 inorder to do so, and b) provide two months’ advance written notice of the proposed increase, using a 4A Form. The increase can be no higher than themarket rate and can be challenged via the First-Tier Tribunal.

K2 will shortly be reaching out to all clients to ensure that they are aware of these upcoming changes. We also anticipate that agents, on behalf of landlords, willbe sending out the Government Guidelines. K2 will be available to support with any requests for the establishing of new leases.