The world’s leading container shipping companies are altering their sailing schedules in response to escalating tensions between the United States and Iran, which could impact ocean freight in the Persian Gulf. This region is a critical supply-chain hub for numerous American and European manufacturers. As a precaution, several carriers are canceling bookings, skipping port calls, and implementing surcharges on shipments passing through the conflict zone.
Impact on Major Shipping Lines
As of March 2, 2023, the following actions have been reported by the top container carriers:
MSC, the world’s largest shipping line, announced on March 1 that it is suspending all bookings for global cargo to the Middle East “until further notice.” The Geneva-based company is actively monitoring the situation and collaborating with relevant authorities to ensure the safety of its operations. Bookings will resume only when the security situation improves.
On the same day, Maersk, headquartered in Copenhagen, revealed plans to suspend refrigerated and dangerous shipments to and from the United Arab Emirates, Oman, Iraq, Kuwait, Qatar, Bahrain, and Saudi Arabia. This suspension also includes all new bookings between the Indian subcontinent and several Gulf states. Previously, Maersk indicated it would avoid the Strait of Hormuz and has already halted transits through the Red Sea. Following the announcement, Maersk’s shares surged to their highest levels since 2022.
Another major player, CMA CGM, based in Marseille, France, stated on March 2 that it is suspending hazardous cargo bookings to Iraq, Bahrain, Kuwait, Yemen, Qatar, Oman, the UAE, Saudi Arabia, Jordan, Egypt’s Port of Ain Sokhna, Djibouti, Sudan, and Eritrea. The company also stopped accepting refrigerated cargo bookings in the Gulf region and issued an “emergency conflict surcharge” of $2,000 per 20-foot container.
Safety Measures and Additional Charges
Cosco, the largest shipping line in China, has directed vessels that have entered the Gulf to proceed to safer waters. Ships heading to the region are advised to prioritize navigational safety by reducing speed and seeking sheltered anchorages if necessary.
In Hamburg, Hapag-Lloyd has joined Maersk in halting crossings through the Strait of Hormuz and rerouting ships away from the Red Sea. As of March 2, Hapag-Lloyd stated that no alternative discharge ports have been designated, which may extend delivery timelines. The firm has also implemented a “war risk surcharge” of $1,500 per 20-foot container.
Lastly, Ocean Network Express, based in Singapore, announced on March 2 that it would temporarily suspend acceptance of new bookings for cargo moving to and from the Persian Gulf until further notice. The company is assessing the situation for goods currently in transit on a case-by-case basis.
The adjustments made by these leading shipping companies reflect the growing concerns about the stability of maritime operations in a region critical for global trade. As the situation evolves, the impact on supply chains and shipping logistics will continue to be closely monitored.
