Iran conflict disrupts ocean, air cargo networks

Core Insights - Ocean and air cargo carriers have temporarily suspended various services connected to the Middle East due to ongoing military conflicts involving Iran, the U.S., and Israel, leading to significant regional turmoil [1] Group 1: Impact on Shipping Operations - CMA CGM has suspended Suez Canal passage and is rerouting vessels via Africa's Cape of Good Hope, halting bookings for hazardous and reefer cargo to several Middle Eastern countries, and implementing an emergency conflict surcharge of $2,000 per twenty-foot equivalent unit (TEU) and $3,000 per forty-foot equivalent unit [3][4] - Other carriers, such as MSC and Hapag-Lloyd, have also suspended bookings and imposed war risk surcharges, with Hapag-Lloyd charging $1,500 per TEU for standard containers and $3,500 for reefer and special equipment [5] - Maersk has paused future sailings through the Bab el-Mandeb strait, opting to reroute its fleet around the Cape of Good Hope [5] Group 2: Market Outlook - The ongoing conflict is expected to delay the return of Red Sea container shipping operations until the security situation improves, with major shipping lines avoiding Suez Canal transit since late 2023 due to Houthi-led attacks [6] - The longer sailing distances are absorbing approximately 2.5 million TEUs of global container shipping capacity, impacting overall shipping efficiency [6] - Freight rates on major global trades are anticipated to soften but will not decline as sharply as previously expected in the latter half of the year due to the limited return of services to Suez Canal transits [7]