Container shipping jumps more than 4 times since the outbreak of the Iran war
Amman2 min read
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Sea freight prices for containers outside contracts from China to the East Coast of the United States have returned to levels similar to those recorded after the global trade disruptions caused by the COVID-19 pandemic, amid expectations of further increases due to rising fuel costs because of the US-Israeli war on Iran.
Data from the shipping pricing platform "Zeneta" showed that spot prices on this route reached $10,948 per 40-foot container, more than four times their level since the outbreak of the war with Iran on February 28.
Zeneta's chief analyst Peter Sand said that prices on this route, which reached $11,900 in January 2022, are "just below the all-time highs" recorded during the COVID-19 pandemic disruptions.
The route between Shanghai and New York is one of the busiest and most profitable container shipping routes for global shipping companies, including "MSC", "Maersk", "COSCO", and "CMA CGM".
Crude oil prices have risen sharply as the fighting intensifies, after the United States and Iran exchanged attacks on oil tankers in the Strait of Hormuz, while Saudi Arabia closed the vital East-West oil pipeline due to airstrikes during the ongoing war in the Middle East.
These developments have driven the average price of low-sulfur fuel oil, widely used in container ships, in 20 ports to rise.
According to data from the marine fuel pricing website "Ship & Bunker", the price on Thursday was $901.50 per ton, compared to $543.50 on February 27, but it remained below the March 20 peak of $1,053 per ton.
Container ship owners resort to passing this cost increase on to customers through additional fees and other pricing tools.
