Ongoing instability in the Middle East is continuing to drive volatility across global fuel markets and shipping operations.
The closure of the Strait of Hormuz—through which roughly 20% of the world’s oil supply transits—has significantly increased bunker fuel prices across major trade lanes. Asian markets remain the most exposed, with fuel costs often exceeding those in Europe and North America.
Rising fuel costs are already impacting freight rates:
- Intra-Asia rates increased 10% in the final two weeks of March
- Drewry’s Intra-Asia Container Index rose 28% in early April and sits 29% higher year-over-year
Carriers are actively adjusting operations to manage costs. Average sailing speeds have declined by approximately 2%, while operators face mounting financial pressure. Hapag-Lloyd estimates up to USD 50 million in additional weekly operating costs driven by fuel, insurance, and storage.
At the same time, alternative bunkering strategies are being deployed as carriers navigate “war zone” premiums and shifting fuel supply routes.
What this means for customers:
Expect continued rate volatility, potential service adjustments, and ongoing cost pressure across key trade lanes—particularly in Asia.
Axxess continues to monitor developments closely to support informed decision-making across your supply chain.
Sources: ShippingWatch, The Loadstar, Drewry, American Shipper, gCaptain