Middle East Shipping Update and Freight Impacts
To Our Valued Partners,
This is a follow-up to our March 4 advisory. Conditions have continued to change, and there are new costs taking effect over the next two weeks that will affect your shipments, so we wanted to get an update out.
1. Current situation
We are now on day 12 of the Hormuz closure. Commercial shipping through the strait has effectively stopped. Iran clarified on March 5 and again on March 8 that the closure technically applies only to US, Israeli, and Western-allied vessels, but in practice no major carrier is transiting. War-risk insurance remains unavailable for most operators, and crew members have the right under ITF rules to refuse transit into the designated high-risk zone.
The Red Sea situation has not changed. Houthi forces resumed attacks on February 28, so the Suez Canal option that some carriers were beginning to restore in early 2026 is off the table again. All Asia-Europe traffic is going around the Cape of Good Hope, adding 10 to 14 days per voyage.
2. Fuel costs
Bunker fuel prices have moved significantly since the conflict began. VLSFO at the world’s major bunkering ports rose more than 35% in one week, reaching approximately $740/ton as of March 6 per Ship & Bunker’s G20 index. Brent crude was trading around $102-103 per barrel as of March 9, up roughly 48-50% from a month ago. These increases are what’s driving the fuel surcharges carriers are now rolling out.
3. Carrier updates since March 4
Maersk: Suspended its FM1 (Far East to Middle East) and ME11 (Middle East to Europe) services effective March 6. Emergency Contingency Surcharges are now in effect on several corridors, reaching up to $3,300/TEU on cargo routed to Latin America and the Caribbean depending on trade lane. Suez Canal transits remain suspended. Suez Canal transits remain suspended. On March 10, Maersk announced a global Emergency Bunker Surcharge (EBS) effective March 25, covering fuel cost increases beyond what their standard fuel adjustment handles. On long-haul headhaul moves, the EBS is $200 per 20′ dry container and $400 per 40′ dry container, with higher rates on reefer equipment.
MSC: The End of Voyage declaration and $800/container deviation surcharge remains in place. MSC added an Emergency Fuel Surcharge effective March 16 for cargo from the Mediterranean and Black Sea: $30/TEU dry to the Red Sea, $60/TEU dry to East Africa, $40/TEU dry to the Indian Subcontinent, with reefer rates slightly higher across each lane. A separate fuel surcharge from West Mediterranean and North Europe to Canada and Mexico takes effect March 23.
CMA CGM: The Emergency Conflict Surcharge of $2,000/20′, $3,000/40′, $4,000/RF announced March 2 is still in place. An Emergency Fuel Surcharge takes effect March 23 on all trades: $150/TEU dry and $180/TEU reefer on long-haul headhaul, $75 and $90 on backhaul and intra-regional. Reefer and dangerous goods bookings to most Gulf countries remain suspended.
Hapag-Lloyd: The War Risk Surcharge of $1,500/TEU standard and $3,500/TEU reefer from March 2 remains in place. All Hormuz transits and bookings to UAE, Iraq, Kuwait, Qatar, Bahrain, Oman (Sohar), and Saudi Arabia (Dammam and Jubail) remain suspended.
ONE: On March 10, ONE announced an Emergency Fuel Surcharge effective March 24 for non-FMC trades and April 9 for US-regulated trades. The rate is $160/TEU dry on long-haul headhaul, $80/TEU dry on backhaul and short-sea trades, with reefer rates slightly higher across each category.
4. What This Means for your Shipments
• Higher transportation costs due to emergency surcharges and fuel price volatility
• Booking limitations or rerouting requirements
• Vessel schedule disruptions and port delays
• Contingency routing and alternate port planning
• Insurance review due to war risk implications
April 2026 Rate Notices
Separately from the Middle East situation, we have two April rate notices to share.
5. LCL Import General Rate Increase GRI — Asia to USA — Effective April 1, 2026
A General Rate Increase will take effect on April 1, 2026 for all LCL import shipments from Asia to the United States. The increase is $50 per weight/measurement ton and applies to all cargo including transshipment points.
6. Origin Cargo Receiving Surcharge (OCRS) — Effective April 10, 2026
An Origin Cargo Receiving Surcharge of $7.00 per CBM (minimum $7.00) will take effect on April 10, 2026 for LCL shipments. For export shipments, the applicable date is the cargo receiving date at origin. For import shipments, the applicable date is the vessel’s estimated time of arrival.
This surcharge reflects the increasing costs of cargo handling and facility operations at origin consolidation points. It is among the first formally announced charges of this type in the LCL market, and other consolidators are expected to follow with similar notices in the coming weeks.
We are actively monitoring carrier advisories, fuel markets, and operational shifts and will keep sending updates as things develop.
Call me anytime at 833-782-7628 Ext. 1.
