GoKawiilIMPORTERS of containerised goods around the globe are paying more for their ocean transport as a result of the Hormuz crisis.
In yet another side effect of the Middle East war, container lines are successfully passing along fuel costs inflated by the effective closure of the Strait of Hormuz.
The Shanghai Containerized Freight Index global composite rose to 2,572 points in the week ending Friday, up 16% from the week before. It is now double its level in late February, just before the US and Israel attacked Iran.
This week’s SCFI global composite reading was the highest since the week of September 6, 2024, during the Red Sea crisis.
Impact of higher bunker fuel costs
“Geopolitical tensions in the Middle East are weighing on sentiment, with elevated bunker costs and fuel surcharges adding upward pressure across trade lanes,” said Drewry.
Maersk chief executive Vincent Clerc said in a conference call that his company is paying around $500m per month in extra fuel costs due to the Hormuz crisis “that we must find a way to pass through”.
Hapag-Lloyd chief executive Rolf Habben Jansen said that his company is paying €50m-€60m extra per week ($250m-$300m per month) and “rate increases have been roughly in line with the cost increase we have faced”.
When importers pay more for ocean freight, it is the same as “when you go to the petrol station and you have to pay a higher price”, said Habben Jansen.
Pass-along fuel costs may also be affecting peak season timing, further boosting spot rates.
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