U.S.-Iran conflict nearly halts Hormuz shipping, freight rates nearly fivefold
The U.S.-Iran conflict has seriously shaken up global shipping, with the Strait of Hormuz, a critical artery for global energy flows, almost coming to a halt.
Freight rates have jumped nearly five times, and war-risk insurance is now 10 times pricier.
Instead of 150 ships passing through daily, only a handful are making it now.
Some shipments to US 45-70 days
With ships forced to take long detours around Africa, deliveries to the US and Europe are facing significant delays, with some transit times to the US stretching to 45-70 days.
About 2,000 ships and 20,000 seafarers are stuck facing restrictions in the region.
The cost spike is hitting exporters hard—especially in Europe and the Gulf—and everyday items like clothes could get 15% to 20% more expensive if this keeps up.