Middle East Tensions Drive Surge in Gulf Freight Rates as Maersk Suspends Haifa Port Calls

By Lori Ann LaRocco – Ocean freight spot rates from Shanghai to the Arabian Gulf’s largest port, Jebel Ali, are surging.

Xeneta average spot rates show an increase of 55% month over month from Shanghai to Jebel Ali, prior to the conflict escalation between Israel and Iran. Rates are now $2,761 per FEU.

In a note, Peter Sand, Xeneta Chief Analyst, wrote the conflict in the Middle East has seen elevated risk and associated operational costs for ocean container shipping trades transiting the Arabian Gulf.

These costs include security measures, higher bunker fuel prices, and fuel costs as vessels use more fuel due to faster sailing through high-risk areas.

Integrated logistics provider Maersk announced Friday it is temporarily suspending port calls to Israel’s largest container port, Haifa. The port, which is operated by the Adani Group, has been targeted by Iranian missiles and has not suffered any damage. The CFO recently debunked misinformation that the port was on fire from a strike on Iranian social media.

Sand wrote that while they have not yet seen any decisive moves by carriers in announcing immediate changes on services into the Arabian Gulf, “There is clearly a serious risk of further escalation in this conflict and the potential for disruption to supply chains and a spike in freight rates.”

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