The world’s leading container shipping companies are revising their sailing schedules in response to escalating tensions between the United States, Israel, and Iran. The conflict poses a significant threat to the Persian Gulf, a critical supply-chain hub for numerous American and European manufacturers. In light of this, several carriers have announced temporary cancellations of bookings, skipped port calls, and the implementation of surcharges for transporting containers through the affected regions.
Impact on Major Carriers
As of March 2, 2023, the following major shipping lines have made notable adjustments to their operations:
MSC, the largest container shipping line globally, announced on March 1 that it is suspending all bookings for global cargo to the Middle East “until further notice.” The Geneva-based company is actively monitoring the situation and stated that it is collaborating with relevant authorities to ensure the safety of its operations. Bookings will resume once the security situation improves.
Maersk, based in Copenhagen, confirmed on March 2 that it is halting refrigerated and hazardous shipments into and out of the United Arab Emirates, Oman, Iraq, Kuwait, Qatar, Bahrain, and Saudi Arabia until further notice. The company has also suspended all new bookings between the Indian subcontinent and several Gulf states. Previously, Maersk had announced it would avoid the Strait of Hormuz and cease transits through the Red Sea. Following these announcements, Maersk’s shares rose to their highest value since 2022.
CMA CGM, headquartered in Marseille, France, also announced on March 2 that it is suspending hazardous cargo bookings immediately to a range of locations including Iraq, Bahrain, Kuwait, Yemen, Qatar, Oman, the UAE, Saudi Arabia, Jordan, Egypt’s Port of Ain Sokhna, Djibouti, Sudan, and Eritrea. The company also imposed an “emergency conflict surcharge” of $2,000 per 20-foot container.
Further Adjustments by Other Carriers
Cosco, China’s largest carrier, instructed vessels that had entered the Gulf and completed operations to proceed to safe waters. Ships headed to the region are advised to prioritize navigational safety, including speed reduction and waiting at designated sheltered anchorages.
Hapag-Lloyd, based in Hamburg, Germany, has joined Maersk in stopping crossings through the Strait of Hormuz and rerouting ships away from the Red Sea. As of March 2, the company reported that no alternative discharge ports have been designated, which may extend delivery timelines. They have also instituted a “war risk surcharge” of $1,500 per 20-foot container.
Finally, Ocean Network Express from Singapore announced on March 2 that it would temporarily suspend new bookings for cargo moving to and from the Persian Gulf. For cargo already in transit or planned, the company is assessing the situation on a voyage-by-voyage basis.
These developments underscore the ongoing volatility in the region and its potential impact on global supply chains. As shipping companies navigate these challenges, manufacturers and consumers alike may experience delays and increased costs in the coming weeks.
