Strait of Hormuz disruption is driving container freight rates sharply higher across major East–West trades, spreading delays and cost pressures throughout global shipping.
According to Peter Sand, Chief Analyst at Xeneta, the effects are no longer limited to the Middle East, with even distant trade lanes experiencing notable increases.
“Five weeks into the Strait of Hormuz closure and spot rates on every major East–West trade lane have risen sharply, showing this is a conflict with global repercussions for ocean supply chains,” Sand said.
Freight rates from the Far East to North Europe and the Mediterranean, routes directly exposed to the disruption, have climbed around 31 per cent and 30 per cent respectively since the end of February.
Meanwhile, Far East to US West Coast rates are up 29 per cent, underlining the systemic reach of the crisis.
READ: Blanked sailings loom as ocean spot rates continue to fall
Port congestion in the Middle East has spilt into major Asian transhipment hubs, including Port of Singapore, Port Klang and Tanjung Pelepas, placing additional strain on already stretched supply chains.
Shippers are increasingly securing capacity despite higher rates, prioritising reliability ahead of peak season, while carriers continue passing on the cost of uncertainty.
Bunker fuel markets remain volatile: supply in Singapore is stable, but prices remain roughly double pre-crisis levels, while costs in Rotterdam continue rising.
With no clear resolution, carriers are expected to maintain contingency measures such as alternative routing and slow steaming, with blank sailings likely if the disruption persists.
For more information:
Xeneta – https://www.xeneta.com/
