Shipping Costs Rise Amid Hormuz Crisis, Trade Routes Shift
The escalating conflict in the Middle East has significantly disrupted global shipping, leading to increased marine fuel prices and forcing shipping companies to impose emergency surcharges. This upheaval is reshaping trade routes and increasing transportation costs on international trade corridors.
Shipping lines, retailers, and manufacturers are increasingly adjusting to the uncertainty created by the situation around the Strait of Hormuz, a vital global oil transit chokepoint. The rise in marine fuel, also known as bunker fuel, has been so pronounced that shipping companies have implemented emergency fuel surcharges to offset these additional costs.
One noticeable impact of these developments is the advancement of the peak cargo shipping season from summer to spring. Anticipating further fuel cost increases and potential new tariffs in the United States, importers surged shipments early, driving container imports at the Port of Los Angeles to the second-highest monthly volume ever recorded in May 2026. The port handled 449,370 twenty-foot equivalent units (TEUs), marking a 26% increase compared to May of the previous year.
Gene Seroka, Executive Director of the Port of Los Angeles, explained that this surge in cargo movement results from a combination of factors, including inventory restocking, concerns over escalating fuel prices, uncertainty around trade policies, and preparations for upcoming retail seasons. He emphasized that companies now operate with shorter planning horizons, seeking to capitalize on emerging opportunities amid the volatile environment.
The conflict has also led to disruptions in the supply of bunker fuel, with some regions experiencing shortages. This scarcity has forced traders to forgo shipping some cargo and instead deliver fuel supplies to critical bunkering hubs located outside the Middle East. Vessel operators have responded by instituting emergency surcharges. For instance, the shipping giant A.P. Moller – Maersk introduced an Emergency Bunker Surcharge (EBS) effective from March 25 to address sharp fluctuations in fuel supply and the related distribution costs. Similarly, Hapag-Lloyd launched an Emergency Fuel Surcharge (EFS) to cover extraordinary costs beyond existing fuel recovery mechanisms.
The turmoil in the Middle East has, therefore, prompted significant shifts in global shipping dynamics, with increased costs and altered trade flows influencing international logistics and supply chains. Market participants continue to monitor developments closely as they navigate the complex repercussions of the ongoing crisis surrounding the Strait of Hormuz.
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