Shipping Costs Rise Sharply as Iran Conflict Disrupts Key Routes

Disruptions to shipping in the Middle East have led to higher costs and delays for global trade, following the escalation of the Iran-Israel-US conflict.

Shipping through the Strait of Hormuz and another vital route has slowed to near standstill, impacting the movement of goods and energy supplies worldwide. The halt has affected about one-fifth of the global oil supply, and Brent crude oil prices exceeded $100 per barrel in early March 2026.

Vincent Clerc, chief executive of Maersk, said in a statement that the increased shipping costs resulting from the conflict will be passed on to consumers. Clerc also called for the restoration of freedom of navigation through the region’s main shipping lanes to stabilize trade flows.

Marine insurers have raised war-risk premiums for vessels operating in the Red Sea and Persian Gulf. According to industry data, insurance costs for journeys into the Gulf have increased from 0.125% to 0.2% of a ship’s value, reflecting the heightened risk environment for shipping companies.

What the numbers show

• Freight costs have risen by approximately $200 per standard 20-foot container
• Air freight rates from Asia to Europe are up 45% since the conflict began
• At least seven seafarers have died in the Strait of Hormuz since the start of hostilities

Crude oil prices have continued to climb, with levels reaching above $110 per barrel, the highest recorded since 2022. Shipping companies have responded by increasing fuel surcharges, which are being transferred to customers as part of overall freight costs.

Fuel expenses now represent between half and three-fifths of the total cost of shipping goods by sea, according to supply chain experts. The increased fuel prices and insurance premiums have contributed to the overall rise in shipping expenses for global trade routes passing through the affected region.

As a result of maritime disruptions, some shippers have shifted goods from sea to air transport, particularly between Asia and Europe. The cost of shipping goods by air on these routes has increased by 45% since the onset of the conflict.

Industry reaction

Maersk’s chief executive stated that the company will transfer the higher shipping costs to consumers and emphasized the need for restored access to key maritime corridors in the Middle East.

The United Nations’ International Maritime Organization confirmed that at least seven seafarers have lost their lives in the Strait of Hormuz since the conflict began, highlighting the risks faced by crews in the region.

* This article is based on publicly available information at the time of writing.