Reviewed for accuracy on 07/05/2026
The developing US-Israel and Iran conflict has caused ripple effects on the rest of the world, particularly in the shipping industry. The ongoing security threats in the Strait of Hormuz have forced shipping lines to suspend vessels sailing through the Persian Gulf into the Gulf of Oman, preventing Saudi Arabia, the UAE and Iraq from exporting oil and gas. With the Strait of Hormuz being ‘one of the world’s most important oil choke points’, this has caused severe disruption to the movement of global oil.
The Red Sea has not returned to full operation since vessels were rerouted in 2023, following attacks by Yemen’s Houthi rebels aiming to put pressure on Israel to stop attacks on Gaza. The current conflict has prolonged the diversion of vessels around the Cape of Good Hope due to the risk of cargo ships being attacked. This means the current delays on transit times will remain for the time being
These combined delays will likely cause rate increases due to supply and demand. Ships are not arriving at ports as quickly, so fewer empty containers are available for shipments waiting to depart.
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Update - May 2026
Even with the ceasefire announcement, the price increase and schedule delays are, unfortunately, due to remain for some time.
Continued disruption to the Red Sea route means vessels are on the water for longer, and the attacks in the Straight of Hormuz are maintaining high oil and gas prices; therefore, shipping lines are reflecting the delayed turnaround of empty vessels/containers as well as higher fuel costs in their pricing.
The Chinese foreign minister has called for the Straight of Hormuz to be reopened as an “urgent priority” (6 May 2026, BBC). However, it is unclear whether conflicts will cease in the coming days, with Iran still reviewing the US proposal to end the war (6 May 2026, BBC).
As of 6 May 2026, 32 confirmed incidents have been reported in the Straight of Hormuz, with one as recent as the 5th May. (International Maritime Organisation)
We understand that uncertainties in the shipping industry can be daunting when managing your business. We recommend accounting for the updated transit times and contacting us for a quote to determine your options. We have friendly advisors who would be happy to answer any queries you may have about importing from Asia.
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What We Know - March 2026
What we know:
Whilst the re-routing of vessels decreases the number of empty containers available, there have been reports of shipping lines looking to increase freight rates in mid-March to help manage capacity.
With the threats on the Strait of Hormuz adding uncertainty to the global movement of oil, UK hauliers have implemented an emergency fuel surcharge of 19%. Continued disruption could also increase bunker fuel costs for the shipping lines.
Due to uncertainty in the industry, cost increases will depend on how well regular services can run. While we have already seen direct effects on schedules in India, if the shipping lines can keep on top of running regular services, it should keep price increases to a minimum.
Based on what we know currently, we are estimating shipments to increase in cost by around 20%. This is to be taken as a very rough guide to help importers plan for upcoming shipments. Unfortunately, it is impossible to predict the exact cost fluctuations caused by the disruption.
Any shipments already quoted for this month by Shippo will be honoured. However, any future quotes may be subject to the increase caused by the current disruption.
If you have any questions, feel free to contact your advisor or call us on 0203 384 0498 to discuss further.