11/04/2026
The war Impact on Different Shipping Routes🤦🤦🤦
1. Middle East/Persian Gulf Route (Directly Affected)
◦ The Strait of Hormuz is closed to shipping, causing shipping companies to suspend bookings or divert routes, resulting in extremely tight capacity.
◦ The attack on Jebel Ali port disrupted port operations, causing severe congestion upon cargo arrival.
◦ War risk insurance premiums have surged by 300%–500%, and the combined GRI (Gross Rate Indicator) increases ocean freight costs by 30%–50%.
2. Red Sea/Europe Route (Indirectly Affected)
◦ The Houthi rebels have resumed attacks in the Red Sea, potentially causing shipping companies to detour around the Cape of Good Hope again, adding 10–15 days to the voyage.
◦ Reduced capacity on the Red Sea route will lead to increased freight rates on the European route due to tight capacity, although the current GRI figures differ from those for the Middle East route.
3. Global Routes (Chain Reaction)
◦ Rising energy prices have increased fuel surcharges, passively raising costs across all routes.
Shippers are turning to alternative routes (such as South Africa and South America), leading to tight space and higher freight rates on these routes.
