Grain Central report on the ongoing closure of the Strait of Hormuz and escalating conflict in the Middle East are intensifying disruptions to global container shipping, with carriers introducing emergency surcharges, suspending bookings and rerouting vessels away from Gulf ports.
Major container lines including MSC, Hapag-Lloyd, CMA CGM, Maersk, COSCO, Ocean Network Express (ONE) and OOCL have implemented contingency measures across Middle East trade lanes. These include vessel deviations, booking suspensions and emergency freight increases reaching several thousand US dollars per container.
Mediterranean Shipping Company (MSC) has declared an "End of Voyage" for shipments already en route to Arabian Gulf ports, meaning cargo will be discharged at the next safe port and made available for collection, leaving customers responsible for arranging onward logistics.
Freight & Trade Alliance (FTA) General Manager – Freight Policy & Operations and representative of the Australian Peak Shippers Association (APSA) Tom Jensen warned the move could leave cargo owners facing substantial additional costs.
Mr Jensen said:
"So that means shippers must arrange alternative logistic solutions to reach their final destination and they may be faced with additional port-handling, storage, detention, inland-transport costs; you name it."
"Shippers are up for a massive amount of extra cost in that respect as well."
The deviation also includes an additional surcharge.
"So not only are you hit with the extra fees associated with getting your goods to the final destination, once they get offloaded at the nearest port, you're also up for $800 US in deviation surcharges as well."
Mr Jensen warned the broader consequences may ultimately flow through supply chains.
"It's not looking good, and it's going to have dire impacts and likely put on effects to the cost of living as well."
Australia exports significant agricultural commodities to the Middle East including wheat, canola, barley and containerised pulses, while also relying on the region for key imports such as fuel and fertiliser, meaning prolonged disruption across Gulf shipping routes has the potential to impact both export and import supply chains.
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