According to a report from The Maritime Executive, ocean carriers are exercising caution following recent attacks in the region. Many have paused transits through the Strait of Hormuz for safety reasons, and war risk insurance increases are expected for voyages through that area.

Read also: Hormuz on Edge: Global Shipping Braces for Fallout After U.S. Strikes on Iran

Hapag-Lloyd announced it will implement a war risk surcharge, raising prices for shippers. MSC stated it is adjusting its network operations and has directed vessels in the Gulf to proceed to safe shelter areas while suspending cargo bookings for the region. CMA CGM has similarly paused its Gulf operations and is directing vessels to safety points. Maersk has suspended all vessel crossings in the Strait of Hormuz indefinitely.

Port operations in the Middle East have also been disrupted. The region’s largest container port, Jebel Ali, temporarily shut down after a fire caused by falling drone debris but has since resumed work. Authorities have closed the seaport in Bahrain until further notice, and crew changes are suspended. The port of Duqm in Oman also temporarily suspended operations after a drone strike.

Red Sea Route Faces Renewed Uncertainty

Major Western ocean carriers had recently resumed operations through the Red Sea. However, following U.S. attacks, there are indications that the Red Sea route may be blocked again. Maersk announced the suspension of all Red Sea transits and the rerouting of vessels around the Cape of Good Hope. CMA CGM followed by suspending all Suez transits.

The rerouting of vessels is expected to absorb excess vessel capacity due to the longer journey. Maersk’s stock rose in early trading, as did the stock of its alliance partner, Hapag-Lloyd.

Source: IndexBox Market Intelligence Platform