By Our Correspondent
National News – The recent escalation of conflict between Iran, Israel, and the United States is significantly impacting global shipping costs, a leading shipping executive has told reporters.
Vincent Clerc, CEO of Maersk, the world’s second-largest container shipping company, revealed that increased fuel and transportation costs are being passed directly to consumers.
“Ultimately, these increases will affect our customers and eventually reach the end consumers,” Clerc explained, highlighting the ripple effect on goods ranging from electronics to clothing.
Crude oil prices, which spiked near $120 per barrel amid hostilities, remain elevated at around $87, nearly 20% higher than pre-conflict levels.
The war has effectively halted shipping through the crucial Strait of Hormuz, a chokepoint for roughly a fifth of global oil shipments.
Iran has justified the blockade as a wartime necessity, while major shipping companies, including Maersk, MSC, and Hapag-Lloyd, reroute vessels around the longer, costlier Cape of Good Hope.
The disruption is causing widespread logistical challenges, particularly for food imports, as vessels face delays and ports become congested.
Clerc noted that while land transport and trucks are being used as temporary solutions, they cannot match the volume of sea shipping. Essential goods remain prioritized, but exports like petrochemicals face setbacks.
Governments including the US and France have suggested naval escorts to reopen the waterways, but Clerc emphasized that a long-term solution would require diplomatic negotiations to restore peaceful navigation.
“A naval presence is only a temporary measure. Freedom of navigation must be fully restored to avoid prolonged disruptions,” he said.
Current data indicates over 130 ships remain stuck in the Gulf, with some vessels turning off transponders to avoid detection.
China has already engaged shipping executives to discuss rising international freight costs, signaling global economic concerns.
Maersk reports that additional shipping costs average around $200 per 20ft container, representing a 15–20% increase for many shipments.
The company continues to adapt with logistical solutions, ensuring vital supplies remain available despite the ongoing crisis.
