The Middle Eastern maritime issue has become a highly constrained affair. There may be an existing ceasefire, but the Strait of Hormuz remains effectively closed off, leading to intense pressure from the geopolitical perspective and efforts to find alternate routes.
Weekly Ocean Freight Update – Week of May 22, 2026
The Middle Eastern maritime issue has become a highly constrained affair. There may be an existing ceasefire, but the Strait of Hormuz remains effectively closed off, leading to intense pressure from the geopolitical perspective and efforts to find alternate routes.
Hormuz Blockade and Toll Pushback
Daily transit movements via the Strait of Hormuz have been reduced to a mere 10 to 16 vessels, which is very low compared to the average of 125 to 140 vessels daily prior to the dispute. The matter worsened when Iran sought to charge mandatory fees for vessels crossing the strait as part of a way of asserting its dominance. However, in an unprecedented show of diplomatic harmony following a meeting, both the United States and China condemned such attempts to charge illegal tolls.
Chinese Transits Amid the Logjam
As top-rated shipping companies from the West such as Maersk, MSC, and Hapag-Lloyd continue to stay away from the high-risk area, the flow of traffic remains patchy. According to data obtained from maritime trackers this week, the container ship named Zhong Gu Nan Chang, which is flying under the Chinese flag, managed to make it through the Strait. However, despite the rare crossing, there is still an immense logistics bottleneck, with at least 1,500 merchant vessels and 20,000 sailors stranded in the Gulf area.
Emerging Red Sea Services
Given that access to the principal seaway is severely constrained, various nations are working hard on developing alternatives for their logistics chains. The ports authority of Saudi Arabia has initiated a new shipping route through the Red Sea, connecting the Jeddah Islamic Port with Salalah in Oman and the Port of Djibouti. On the other hand, Egypt and Eritrea have concluded a new agreement concerning shipping and security in the Red Sea.
Freight Rates & Emergency Surcharges
The compounding effects of extended detours via the Cape of Good Hope, soaring bunker fuel prices, and port congestion are keeping ocean freight rates artificially high as the pre-peak season begins:
• Asia to Middle East: Spot rates remain severely inflated to around $6,900 . Carriers are maintaining emergency conflict surcharges ranging from $2,000 to $4,000 per container to offset the risks and costs of overland diversions.
• Global Spot Rates: Carriers are aggressively managing oversupply through blank (void) sailings. This artificial capacity control is keeping baseline global rates stable but high, averaging $2,100 to $2,200 per FEU.
• Port Congestion: The massive shift to alternative hubs has severely degraded efficiency, with waiting times at critical detour gateways like Jeddah expanding to roughly 36 hours.
Short-Term Outlook
The situation is expected to be extremely volatile and expensive in the supply chain industry towards the end of May. With the capacity manipulation by the carriers and geopolitical risks, it is certain that the basic cost of transport will remain high in the coming quarter. It is imperative for shippers to book their spaces early in order to avert the surcharge costs for June peak season.
