Businesses face huge spike in shipping costs as Hormuz fuel crisis deepens
Shipping lines say they have no choice but to pass on steep cost rises, as the Iran war sparks a fuel crisis that could last well into next year
In Shanghai, one of the world’s busiest ports, the price of shipping a container has already surged dramatically since the start of the war, according to the Shanghai Containerised Freight Index – a gauge tracking spot rates across 13 global trade lanes out of the city.
The index has nearly doubled from 1,333.11 points at the end of February to 2,571.73 on Friday, meaning that prices have increased from about 1.3 times the benchmark level set in 2009 to more than 2.5 times that level.
A similar trend is visible in another major benchmark: maritime consultancy Drewry’s World Container Index, which monitors freight rates across East-West sailing routes.
Spot rates have been climbing for four consecutive weeks and now stand at US$2,800 per 40-foot container, up from US$1,899 in late February, according to Drewry data released on Thursday.
Prices are expected to rise further in the coming weeks, according to Drewry, as the early peak season for global shipping approaches and the fuel crisis continues with no end in sight.