Stop ports of call, stop booking, route freight rates soar 55%

Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, focusing on markets such as Europe, America, Canada, Australia, Southeast Asia, etc., and is more than the owner of the cargo owner.

Shipping giant DenmarkMaerskA statement on the 20th stated that due to the conflict between Israel and Iran, its ships were suspended from docking at the port of Haifa, Israel and the acceptance of cargo from Haifa.

In a statement, Maersk said it decided to suspend operating ships from docking at the port of Haifa, Israel, after carefully analyzing reports on threats and risks related to ongoing conflicts between Israel and Iran, especially the potential risks of docking at Israel's ports and their impact on crew safety.

Maersk stressed that ensuring the safety of crew members and operations is a priority and that, given the increasing turbulence of the region, this positive measure is taken to protect people, assets and customers’ cargo.

Maersk added that it has maintained close communication with customers who may be affected by the decision and is working to coordinate alternative transportation options to minimize disruption to the supply chain.

Meanwhile, Maersk said it will continue to pay close attention to developments and is ready to re-evaluate the decision if it is safe and feasible.

Hapag-LloydA notice was also issued on the 20th that in view of the continued escalation of geopolitical tensions in the Middle East, we are closely monitoring the developments. The priority is to ensure the safety of crew members and cargo, and to provide continuous and reliable services.

After careful assessment of the current security environment, Hapag-Lloyd has decided to temporarily reduce services to Israel's Haifa Port.

Specifically, our Atlantic Circle 7 (AL7) service will continue to dock at the port, but the Eastern Mediterranean Express 3 (EM3) service has temporarily stopped receiving cargo to the Port of Haifa.

Haifa Port is an important port hub in northern Israel. Since the completion of privatization reform in 2022, 70% of the shares are held by India's Adani Ports, and the remaining 30% are controlled by Israel's local Gadot Group. Adani Ports is the port operating entity of the Adani Group, led by Indian billionaire Gautam Adani, and the Port of Haifa is one of four overseas ports it operates outside of India.

Meanwhile, freight rates in the Middle East have increased significantly since the war.

According to data from Xeneta platform, container spot freight rates from the largest port from Shanghai to the Arabian Gulf, Dubai, also soared sharply.

The average spot freight rate for every 40-foot container (FEU) on the route has risen by 55% month-on-month to ,761 before the conflict escalates.

Xeneta chief analyst Peter Sand pointed out that as the situation in the Middle East worsens, sea freight trade across the Arabian Gulf faces higher risks and operating costs, which has driven freight rates upward.

Additional costs include enhanced security measures, rising fuel prices, and increased fuel consumption caused by ships increasing speeds to quickly cross high-risk waters.

The Shanghai Shipping Exchange also pointed out the rise in freight rates on the Persian Gulf route. According to SCFI, on June 20, the market freight rate (mass and sea freight surcharge) of Shanghai Port exports to the Persian Gulf basic port was US,122/TEU, an increase of 1.9% from the previous period. The geopolitical risks of the Persian Gulf route are high, transportation demand is generally stable, and the spot market booking price continues to rise.

Sand further warned that the "serious risks" of escalating conflicts are significantly intensifying, and the possibility of supply chain disruptions and further soaring freight rates are accumulating rapidly.