Gulf war could sink global trade: Shipping giants steer clear
After US and Israeli military strikes on Iran, top shipping companies are steering clear of the Persian Gulf—think ports like Jebel Ali—amid regional security concerns.
Ships now take the long way around Africa, which means extra days and higher costs for global trade.
CMA CGM and Maersk halt bookings, reroute ships
CMA CGM has suspended transit through the Suez Canal and halted hazardous and refrigerated bookings to Gulf states, Yemen, and Djibouti, and imposed an emergency conflict surcharge of $2,000 per 20-foot equivalent unit (TEU); no FEU amount was specified.
Maersk is also rerouting key services around Africa.
All this means delays and pricier shipping for everyone.
Air freight capacity drops by 18%
With Middle Eastern airspace partly closed, global air freight capacity, Flexport CEO Ryan Petersen wrote on X, has dropped by 18%.
Rerouted ships are taking the longer route around the Cape of Good Hope instead of the Red Sea.
The result? Slowdowns in everything from electronics to food reaching shelves—and more unpredictability ahead as tensions continue.