Iran conflict nearly doubles Asia to US shipping costs
Shipping costs from Asia to the US have almost doubled since the end of February, thanks to the ongoing conflict in Iran.
Getting a 40-foot container from Shanghai to Los Angeles now costs $4,565, nearly twice what it did before.
The main reasons? Major supply disruptions at the Strait of Hormuz (where a fifth of the world's oil passes through) and spiking fuel prices are making things tough for global trade.
Fuel prices up 55% burden shippers
Fuel prices for ships have shot up by 55%, with some ports like Fujairah seeing prices as high as $1,211.
This has added billions in extra expenses for shipping companies, costs that are being passed on to customers.
The fuel crunch is also slowing down Asian factories, which could mean more expensive products (and even shortages) hitting US shelves if things don't improve soon.