Shipping crisis escalates as Hormuz effectively closed to container traffic
Maersk and Hapag-Lloyd reroute vessels around Africa, adding weeks to delivery times as war risk surcharges surge
Major container shipping lines have suspended all transits through the Strait of Hormuz as an escalating Middle East security crisis effectively closed one of the world's most critical maritime chokepoints, forcing vessels to reroute around Africa and triggering emergency freight surcharges.
Maersk and Hapag-Lloyd halted vessel crossings through the strait between late February and early March, following joint US-Israeli military strikes on Iranian targets and subsequent retaliatory actions by Iran's Revolutionary Guard Corps. The IRGC issued radio messages declaring the strait closed to commercial shipping, with over 150 ships anchoring in open Gulf waters to avoid risks, according to industry reports.
The suspension marks a severe disruption to global supply chains, as the Strait of Hormuz handles approximately 20% of global oil flows and significant regional container trade. Shipping companies are now diverting services around the Cape of Good Hope, adding approximately 3,500 nautical miles and up to two weeks to voyage times, Maersk confirmed in an advisory.
"The Strait of Hormuz is effectively closed to most commercial traffic," according to analysts, with dry bulk transits through the waterway plummeting by 91% and around 280 bulk carriers trapped in the region. The disruption has forced Qatar to halt LNG operations and impacted global steel trade flows.
Shares of major container lines initially surged more than 4% on March 2 following the suspension announcements, as investors anticipated higher freight rates from the supply constraints. However, investment banks including Morgan Stanley cautioned against interpreting the rally as a fundamental re-rating, noting that the Hormuz disruption, while meaningful, was not on the scale of the Suez Canal's impact on global container flows.
Carriers moved quickly to implement emergency measures to cover heightened operational costs. Maersk applied an Emergency Freight Increase of $1,800 for 20-foot dry containers, $3,000 for 40- and 45-foot dry containers, and $3,800 for refrigerated and specialized equipment, according to the company's announcement. Hapag-Lloyd introduced a war risk surcharge of $1,500 per 20-foot container for Persian Gulf routes, effective March 2.
Other carriers followed suit with similar measures. CMA CGM announced emergency conflict surcharges ranging from $2,000 to $4,000 per container for various cargo types, while MSC implemented substantial rate hikes for shipments from the Far East to European destinations, according to Lloyd's List.
The rerouting creates what analysts have termed a "dual chokepoint disruption," affecting both the Strait of Hormuz and the Red Sea-Suez Canal corridor. Shipping lines including CMA CGM and MSC have also joined the diversion around Africa, compounding delays and capacity constraints across global trade routes.
The additional sailing time significantly increases fuel consumption and emissions, while higher insurance premiums and complex scheduling challenges add to operational expenses. Shipping companies have suspended acceptance of certain cargo types and new bookings for specific routes as they manage the equipment imbalances caused by extended voyages.
Beyond container shipping, the crisis has rattled energy markets, with oil prices climbing as traders assess the impact on petroleum flows through the strait. The disruption represents the most severe threat to global shipping since the Red Sea crisis that began in late 2023, which continues to force vessels to take the longer Cape route despite recent de-escalation efforts.