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Hormuz and Suez Under Pressure: How the Conflict Is Reshaping Shipping Routes

The situation in the Middle East can no longer be ignored — the conflict is directly impacting global maritime logistics. The Strait of Hormuz and the Red Sea have effectively become high war-risk zones, immediately affecting container shipping operations, insurance coverage, and freight rates.

Major carriers — MSC, Maersk, CMA CGM, and Hapag-Lloyd — have either suspended new bookings to the region or redirected vessels to designated safe areas, rerouting services around the Cape of Good Hope. This automatically increases transit times and operational costs.

One of the most sensitive elements is the Emergency Conflict Surcharge (ECS). The surcharge applies to all types of cargo moving from or to Iraq, Bahrain, Kuwait, Yemen, Qatar, Oman, the UAE, Saudi Arabia, Jordan, Egypt (via the port of Ain Sokhna), as well as Djibouti, Sudan, and Eritrea.

Depending on the carrier, the surcharge ranges from $1,500 per TEU to $3,500–4,000 for reefer and special equipment containers. In certain cases, the surcharge also applies to cargo already “on the water.”

In addition, several carriers have announced the immediate suspension of all reefer container bookings to the affected Middle Eastern and Red Sea destinations, further increasing risks for temperature-controlled and perishable cargo.

Insurance remains another major pressure point. Marine insurers are reviewing or temporarily restricting war-risk coverage in the Persian Gulf region, further driving up transportation costs and increasing uncertainty in new contracts.

Despite the partial resumption of operations at certain regional ports, logistics in the area remain highly volatile. The key risks at present include extended transit times, rising total landed costs, port diversions, and cascading delays throughout supply chains.