The ongoing war in the Middle East is continuing to alter the world’s shipping networks. With the Strait of Hormuz being closed to mainstream commercial traffic.
Weekly Ocean Freight Update – Week of March 13, 2026
The ongoing war in the Middle East is continuing to alter the world’s shipping networks. With the Strait of Hormuz being closed to mainstream commercial traffic, supply chains that were heavily reliant on the region were experiencing severe bottlenecks. However, massive government interventions and changes in the networks of the major shipping lines were serving to alleviate the freeze.
Cargo Stranded as Gulf Access Halts
The closure of the Strait of Hormuz has brought regional trade to a standstill. The vital Bangladesh-Middle East trade corridor is currently paralyzed, with over 1,000 export containers of garments and frozen foods stranded at port depots. Industry analysts project that approximately 2 million TEUs will be impacted by the regional closure—a data point calculated by aggregating the volume of containers currently on board vessels alongside those booked for Gulf transit over the next 90 days. Despite this volume, experts emphasize that this capacity contraction is highly localized and does not constitute a global, pandemic-scale supply chain disaster.
Shipping Lines Pivot to New Routes and Transhipment Hubs
In an attempt to circumvent the danger zones, the major shipping lines are pushing ahead aggressively to develop alternative solutions. Maersk and Hapag-Lloyd have suspended their Far East-Middle East loops and replaced them with a new Asia-Mediterranean route that strategically includes the Red Sea port of Jeddah. At the same time, forwarders are assessing the possibilities of using Colombo and Mombasa as alternative transhipment locations to ease the overflow. For the inland movement of goods, MSC has come up with an innovative solution for Iraqi importers. The goods will be delivered to the Turkish ports of Mersin and Iskenderun and then transported to the inland cities of Baghdad and Erbil.
$20 Billion Reinsurance Plan & Soaring Surcharges
To restore confidence in regional maritime trade, the U.S. government announced a sweeping $20 billion Maritime Reinsurance plan. Designed in coordination with military commands, this revolving facility provides critical war-risk coverage for hull, machinery, and cargo for eligible vessels navigating the Gulf.
Despite this government backing, the operational costs of vessel diversions and extended transit times are surging. Shippers should anticipate a wave of new fees across all trades; carriers including CMA CGM, Hapag-Lloyd, and MSC have all announced the implementation of comprehensive Emergency Fuel Surcharges and conflict-related fees to offset the spikes in bunker fuel and insurance premiums.
Freight Rate Update
The operational costs of vessel diversions and extended transit times are surging, impacting spot pricing across major corridors.
• Asia to Middle East: Spot rates have spiked significantly, with prices from Shanghai to key Gulf hubs jumping to over $4,000 per FEU.
• Asia to U.S. West Coast: Rates remain relatively stable, hovering around $2600 per FEU, as soft post-holiday demand offsets the global capacity absorbed by diversions.
• Asia to North Europe: Spot rates are holding near $2,160 per FEU, as vessels continue the longer transit around the Cape of Good Hope.
• Regional Surcharges: Carriers including CMA CGM, Hapag-Lloyd, and MSC have implemented Emergency Fuel Surcharges and war-risk fees ranging from $2,000 to $4,000 per container for Gulf-bound cargo.
Short-Term Future Outlook
While the global network remains largely insulated from catastrophic collapse, shippers moving cargo to or from the Middle East face a highly volatile quarter. The diversion of vessels around the Cape of Good Hope is now expected to persist through at least the second half of 2026. Shippers must prepare for elevated costs, extended transit times, and the necessity of utilizing hybrid sea-land routing options until regional stability is fully restored.
