Container shipping rates surge 16% as Hormuz crisis drives up fuel costs
By
Greg Miller
Crisp on the outside, thoughtful on the inside. A keeper.
Summary
The Hormuz crisis, stemming from the Middle East conflict and effective closure of the Strait of Hormuz, is causing a sharp rise in container shipping rates. Ocean carriers are passing along inflated fuel costs to importers globally. The Shanghai Containerized Freight Index (SCFI) global composite rose 16% week-over-week to 2,572 points, doubling since late February before the US and Israel attacked Iran. This marks the highest reading since a period not fully specified. If the strait remains closed, the impact on container markets could intensify further.
Key quotes
· 5 pulledIMPORTERS of containerised goods around the globe are paying more for their ocean transport as a result of the Hormuz crisis.
In yet another side effect of the Middle East war, container lines are successfully passing along fuel costs inflated by the effective closure of the Strait of Hormuz.
The Shanghai Containerized Freight Index global composite rose to 2,572 points in the week ending Friday, up 16% from the week before.
It is now double its level in late February, just before the US and Israel attacked Iran.
If the strait doesn't reopen soon, the impact on container market could intensify
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