The Impact of the Strait of Hormuz Closure on Global Trade

The recent closure of the Strait of Hormuz following military escalations in the Middle East has created an immediate crisis for the global maritime community. As one of the most vital arteries for international commerce, any disruption here forces an overnight transformation of how goods move across the globe. 

The response from major steamship lines has been swift and decisive to mitigate risk. MSC has already pulled the plug on all new cargo bookings to the Middle East, while telling its ships already at sea to find a safe harbour immediately. At the same time, Maersk and CMA CGM have officially walked away from the Suez Canal for now. They are opting to send their cargo around the Cape of Good Hope to avoid the current mess in the Strait. Even in areas where gateways remain operational, such as Jebel Ali, significant yard congestion and berthing delays are expected to disrupt schedules as the industry tries to manage the sudden backlog.

These disruptions will directly affect operational timelines over the next two weeks. Choosing the long way around Africa adds 10 to 20 days to a typical journey. This massive delay is really straining origin ports. Because equipment is taking twice as long to return, we are seeing a significant container shortage across the board. Expect plenty of schedule changes, like cancelled sailings or ports being skipped entirely, as carriers put the safety of their crews and ships first. You should also know that any movements connected to Iran or GCC feeders are now under intense scrutiny, which makes compliance and sanction screenings a major hurdle for all new bookings.

To maintain service in this high risk environment, carriers are introducing emergency surcharges, including War Risk Surcharges for all Gulf and Hormuz transits. We are also seeing market wide increases in marine insurance premiums and the likelihood of emergency contingency fees being implemented with very little notice. Shiptech is dedicated to passing along only necessary, fully vetted costs, while keeping you in the loop on any service pauses. We are staying focused on keeping your supply chain resilient and moving, and our team is here to help you navigate these shifting trade hurdles as they develop.