Maritime Disputes Increase Shipping Costs: Maersk Abandons Sailings to Haifa Port due to Arising Conflict
In a recent statement, Peter Sand, Chief Analyst at shipping analytics provider Xeneta, warned of the serious risk of further escalation in the ongoing Middle East conflict, particularly between Israel and Iran. This escalation is already causing significant disruption to supply chains, as evidenced by the sharp increase in ocean freight rates from China to the Arabian Gulf.
As of late June 2025, spot rates on the route from Shanghai to the Arabian Gulf’s largest port, Jebel Ali, have surged by approximately 55% month-over-month, reaching an average of USD 2,761 per 40-foot container (FEU). This surge is a direct result of the increased operational risks and costs linked to the conflict.
Carriers are facing additional operational costs, including increased spending on onboard security, elevated fuel consumption due to faster transit speeds through high-risk areas, and higher bunker fuel prices. These factors have contributed to the significant rise in freight rates.
Despite these rate spikes, carriers have not yet declared immediate changes to their service schedules into the Arabian Gulf. However, the risk of further escalation and disruption remains high. The volatile security situation and potential for disruption pose risks of delays or operational interruptions, leading to unpredictability in delivery times and supply chain planning challenges for businesses.
The surge in freight costs will likely cause increased shipping expenses for importers and exporters relying on the Arabian Gulf, potentially raising the cost of goods and affecting trade profitability. Furthermore, given the strategic role of the Strait of Hormuz for maritime transit in the region, although the likelihood of its closure is low, the conflict has increased war risk premiums and freight cost volatility, which could tighten supply chains or force rerouting.
Major shipping companies, such as Maersk, have already been affected by the situation. Maersk has temporarily suspended port calls to Haifa, Israel's largest container terminal. Companies dependent on Middle East trade routes should monitor the conflict closely and prepare for price fluctuations and possible logistical disruptions.
In summary, the ongoing tensions in the Middle East are causing heightened risks for carriers moving through the region, driving a sharp increase in ocean freight rates from China to the Arabian Gulf. This reflects increased security risks and costs, with significant implications for supply chain costs and reliability. Xeneta continues to report on trends in the shipping industry, forecasting another tough year for container shipping due to rising geopolitical tensions.
- The ongoing conflict in the Middle East, particularly between Israel and Iran, is causing significant disruption to the global trade industry, specifically container shipping, as evidenced by the sharp increase in ocean freight rates from China to the Arabian Gulf.
- Carriers operating within the container shipping industry are facing additional operational costs, including increased spending on security, elevated fuel consumption, and higher bunker fuel prices, causing a significant rise in freight rates.
- The strategic role of the Strait of Hormuz for maritime transit in the region has increased war risk premiums and freight cost volatility, potentially tightening supply chains or forcing rerouting, affecting the aerospace and transportation industries.
- The surge in freight costs is causing increased shipping expenses for importers and exporters relying on the Arabian Gulf, potentially raising the cost of goods and affecting trade profitability in general-news and politics.
- The ongoing tensions in the Middle East and its impact on container shipping are being closely monitored by major companies like Maersk, which have already been affected, with Maersk temporarily suspending port calls to Haifa, Israel's largest container terminal. This emphasizes the need for continued vigilance and preparedness in the supply chain industry.
