Strait of Hormuz Disruption Enters Second Week: Regional Port Congestion Threatens Global Supply Chains

Created on Today

The undeclared conflict in the Middle East has now entered its second week, with the effective shutdown of the Strait of Hormuz creating mounting congestion at regional ports—a bottleneck that industry analysts warn could soon ripple outward into global supply chains.

Since the U.S.-Israel strikes on Iran and subsequent retaliatory actions, the narrow waterway serving as the sole entrance to the Persian Gulf has become a no-go zone for much of international shipping. The result? Vessels trapped, cargo stranded, and a logistical logjam that grows more complicated by the day.

Ports Under Pressure

Dubai's Jebel Ali—the Middle East's largest container port—briefly suspended operations over the weekend following an aerial interception that caused a fire nearby. While the port has since reopened, the incident underscored the fragility of normal operations under current conditions.

Regional ports remain technically operational, but major carriers are voting with their schedules. Hapag-Lloyd and MSC have suspended bookings out of Persian Gulf ports and from all origins to these ports—including facilities in Oman and the UAE on the Gulf of Oman side of the strait, cited for their proximity to the conflict zone. CMA CGM has stopped accepting all bookings to and from Persian Gulf ports only. Maersk has suspended new reefer bookings to the entire region, as well as bookings out of India to the Gulf, citing short lead times.

Where Cargo Goes Now

For containers already in transit, the journey has become unpredictable. Carriers still serving the region are diverting shipments to alternative destinations, with most volumes likely to be offloaded at major Far East transshipment hubs—Singapore, Malaysia's Port Klang, and Sri Lanka's Colombo.

This rerouting pattern echoes the early months of the Red Sea crisis in 2024, when similar diversions caused significant congestion at these same hubs. Analysts suggest the current situation may be less severe, citing lower volumes and improved port capacity, but the risk of backups remains real.

Canceled sailings mean gulf-bound containers are starting to accumulate at origin ports in India and the Far East. If the shutdown extends, these backlogs could begin affecting shippers whose cargo has nothing to do with the Middle East—simply because equipment and vessel space are stuck in the wrong place.

The Capacity Math

Annual container traffic through the Strait of Hormuz represents roughly 2-3% of global volumes. But the impact of stranding approximately 100 container vessels inside the Persian Gulf is disproportionately larger—estimates suggest this represents between 1% and as much as 10% of effective global capacity, depending on vessel size and routing.

"The longer these vessels and equipment are out of circulation, the more likely that reduction will be felt in terms of available capacity and equipment out of the Far East," one industry observer noted. When traffic eventually resumes, vessel bunching at Gulf ports will add another layer of complexity—and cost.

Rates Already Responding

The market is reacting swiftly. CMA CGM has introduced an emergency surcharge of $3,000 per FEU for containers destined for the Gulf. Other carriers are applying similar fees for diverted bookings.

The impact is visible in the data: Freightos rates for Shanghai to Jebel Ali have more than doubled in a week, jumping from $1,800 per 40-foot container on March 1 to over $4,000 per FEU by March 3—a spike driven almost entirely by security-related surcharges.

Oil, Insurance, and the China Factor

About 20% of the world's crude oil moves through the Strait of Hormuz, with 80% of Iran's output destined for China. While this would seem to threaten Beijing's supply, Tehran's new freight-only rail line to China—which opened regular operations in 2025—offers a potential bypass. Its current capacity remains unclear, but the route was planned to handle hundreds of trains annually.

Meanwhile, the U.S. has offered to facilitate insurance and naval escorts to keep oil tankers moving, though skepticism abounds regarding how quickly such protections could be mobilized.

Red Sea Return Pushed Further Away

For container shipping's main east-west trades, the Iran escalation has effectively dashed any remaining hopes for a near-term return to Red Sea transits. Maersk and CMA CGM had already retreated from tentative plans to resume Suez Canal services after Houthi threats resurfaced. The new front in the Gulf only reinforces the reality: the Cape of Good Hope route remains the only reliable option for Asia-Europe and Asia-U.S. East Coast services.

Asia-U.S. West Coast rates held steady at $1,843 per FEU as of early March, with Asia-U.S. East Coast prices flat at $3,022 per FEU—suggesting the market is still assessing how far the disruption will spread.

What to Watch

As the conflict grinds on, several factors will determine the scale of global impact:

Duration of the Strait of Hormuz shutdown
Whether carriers expand suspension zones
Transshipment hub congestion levels
Equipment availability in Far East origins
Potential for further surcharges spreading to unaffected trades

Our Commitment

At ACE Containers and Parts, we are monitoring these developments closely and maintaining active communication with logistics partners to minimize disruption for our customers. If you have shipments affected by these events or questions about container availability, please reach out to our team.

ACE Container and Parts Co., Limited is a professional supplier of shipping containers and container parts. We were founded in 2011 and located in Tianjin, China. There is Xingang Port, the largest port in North of China. About 60km far from Beijing International Airport.

We are the No.1 shipping container supplier. We can provide One-Stop shipping container solution for customers. We have obtained ISO9001 and SGS certificate. We can provide shipping containers with CCS, BV, LR, DNVGL Certificate.