Shipping companies are seeking alternatives to the Strait of Hormuz due to rising risks — FT
Logistics companies have begun partially shifting freight transport in the Persian Gulf region to road transport in an effort to bypass the Strait of Hormuz.
The Financial Times reported this on May 17. This move has caused a sharp rise in shipping rates.
According to the FT, due to constant attacks, the Strait of Hormuz has effectively been closed to civilian shipping. Instead of the previous 135 ships per day, only a few vessels now pass through.
In response, leading shipping companies, including MSC, Maersk, CMA-CGM, and Hapag-Lloyd, have begun urgently opening alternative land routes. They are transporting cargo by truck from ports on the Red Sea and the Gulf of Oman.
This shift in logistics has led to a sharp increase in service costs. The cost of shipping a standard 20-foot container from Shanghai to the Persian Gulf has jumped from $980 to $4,131. This figure has even surpassed the peak prices seen during the COVID-19 pandemic.
Road transport can replace only a small fraction of the capacity of large container ships. Overall trade flows to the Persian Gulf have fallen by 60–80%, and regional ports are forced to prioritize food and medicine exclusively. Delivery delays currently reach 60 days.
The crisis has also significantly impacted international aid. The UN World Food Programme reports difficulties in delivering cargo to Yemen, Djibouti, and Sudan. In particular, an aid shipment for Afghanistan is now forced to cross nine countries by land, causing a 43-day delay in its arrival.
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Iranian authorities have begun granting permission to select Chinese vessels to pass through the strategically important Strait of Hormuz.
The Strait of Hormuz has once again come to a near standstill
Additionally, the U.S. military struck the vessel Touska, which was attempting to pass through the Strait of Hormuz under the Iranian flag despite the blockade.
