HORMUZ AND RED SEA TENSIONS: SHIPPING LINES ADJUST ROUTES, WAR RISK SURCHARGES RISE

Major shipping lines such as Maersk, MSC, CMA CGM, and Hapag-Lloyd have announced the suspension or limitation of transit through the Strait of Hormuz, while also halting certain services passing through the Red Sea and the Suez Canal. In many cases, vessels are being rerouted to safer areas or diverted to alternative shipping routes.

Alongside these route adjustments, carriers have begun implementing or increasing War Risk Surcharges (WRS) on cargo moving through the Middle East region.

Rising Surcharges and Transportation Costs

According to updates from the maritime transport market, war risk surcharges are increasing significantly, with some carriers applying fees of up to approximately USD 1,500 per 20-foot container (TEU).

If the security situation continues to escalate, shipping lines may opt to reroute vessels via the Cape of Good Hope instead of transiting the Suez Canal. This alternative route could extend transit times by approximately 10 to 14 days compared to standard voyages.

In addition, longer transit routes lead to increased fuel consumption, higher operating costs, and greater vessel deployment expenses. As shipping capacity is absorbed by extended voyages, the market may face upward pressure on freight rates in the near term.

Furthermore, operations at certain Middle Eastern ports may experience disruptions, potentially affecting cargo handling schedules and overall logistics planning.

Import–Export Businesses Advised to Act Proactively

Amid ongoing geopolitical impacts on the shipping industry, import–export businesses are advised to closely monitor developments in Middle Eastern shipping routes.

Companies should review existing bookings to and from the Middle East or Europe, while preparing for potential transit delays. Adjustments to production schedules and delivery timelines should also be considered to minimize supply chain risks.

Additionally, businesses are encouraged to engage early with logistics providers or freight forwarders to stay updated on new surcharges, adjust routing strategies, and optimize transportation costs during this period of volatility.