The world’s second-largest shipping company, Maersk, anticipates that increased maritime transport costs stemming from the ongoing conflict in Iran will ultimately be passed on to consumers. “We have traditional contractual mechanisms that transfer this fluctuation in fuel price, whether it goes up or down, to customers,” said Vincent Clerc, CEO of the Danish shipping giant, in an interview with BBC. “So, in this case, those increases will be passed on to our customers and, to consumers.”
Maersk’s container shipping division is central to its operations, playing a critical role in the global transport of consumer goods, including toys, clothing, and electronics. The company’s warning signals potential inflationary pressures as the conflict disrupts key trade routes.
Clerc urged the U.S., Israel, and Iran to reach “some sort of agreement” to restore global trade routes in the Middle East, arguing that this would be a preferable solution to Western naval escorts for reopening waterways.
The war between Iran and Israel, alongside U.S. Involvement, has led to the near-complete blockage of two vital maritime routes, causing widespread disruption to the global economy.
Simultaneously, major shipping companies are also diverting vessels away from the Red Sea due to security threats.
“we need to get back to a situation where freedom of navigation and peaceful navigation are restored,” Clerc stated.
Higher costs associated with longer voyages around the Cape of Good Hope, coupled with rising oil prices, are making shipping more expensive, adding to inflationary pressures, he added.
“The main concern is the safety of our crews, the safety of our assets,” Clerc said.
He explained that, as long as the significant threat of drone attacks persists without any guarantee of an armistice between the parties, “This proves very difficult for us to put our colleagues and ships in danger.”
At Least Seven Mariners Killed in the Strait of Hormuz
According to the United Nations’ International Maritime Organization (IMO), at least seven sailors have been killed in the Strait of Hormuz since the start of the conflict, with several others injured.
Addressing an IMO committee on Monday, Secretary-General Arsenio Dominguez stated: “These seafarers are simply performing their duties and providing an essential service to the global community, ensuring the continued flow of goods and energy, and must be protected from the consequences of wider geopolitical tensions.”
Iranian government spokesperson Fatemeh Mohajerani justified the blockade, stating that the country must maximize “all resources,” including the Strait of Hormuz, while in a state of war.
Prior to the conflict, approximately 20% of the world’s oil supply transited through the Strait of Hormuz, which is now effectively closed due to Iran’s threats to target maritime shipping.
Clerc told the BBC: “We have traditional contracting mechanisms that transfer this fluctuation in fuel price, whether it goes up or down, to customers. So, in this case, those increases will be passed on to our customers and, to consumers.”
Meanwhile, on Tuesday, China’s Ministry of Transport announced it had summoned the CEOs of Maersk and another shipping company to discuss “their international shipping operations.”
The discussions were reportedly convened to lodge complaints about rising freight rates amid the war in Iran.
The additional costs amount to approximately $200 for a standard 20-foot container, representing “a 15% to 20% increase in transport costs,” Clerc said.
Logistical Challenges
Maersk’s rivals, MSC and Hapag-Lloyd, have also increased rates due to disruptions to their services related to the situation in Iran.
Clerc said the disruptions caused by the war have had a “profound” impact on Maersk, the world’s second-largest shipping company, with many customers not receiving their deliveries on the expected date.
He warned that this is “extremely disruptive” in a region heavily reliant on food imports, creating significant logistical challenges to “maintain food moving” and ensure it “continues to be on supermarket shelves” rather than spoiling on ships or in ports.
When asked if he was concerned about product shortages, he said that “we’ve seen a fantastic reaction,” with land bridges and trucking attempting to maintain the flow.
However, transporting the same volume by land is difficult, and Clerc stated that while there is sufficient capacity to maintain the flow of essential goods, many exports, such as petrochemicals, “will have to take a backseat for a period.”
Governments, including those of the United States and France, have suggested that naval escorts could be a way to reopen waterways. The head of Maersk stated that effective protection could be “at least a temporary reprieve” to get ships moving again, but emphasized his unwillingness to endanger personnel.
Such a move appears to be welcomed by global energy markets and could provide relief to the world economy. When U.S. Energy Secretary Chris Wright posted on social media that the U.S. Navy had successfully escorted an oil tanker through the Strait of Hormuz, oil prices dropped sharply.
However, they rose again when the post disappeared and the White House stated that no tanker had been escorted outside the strait.
Just weeks ago, major shipping companies, including Maersk, began a gradual return to the Red Sea route.
Threats of attacks by the Houthi group on ships linked to the conflict between Hamas and Israel had prompted them to avoid this route for two years. Any vessel there or in the Hormuz Strait remains vulnerable given the current tensions.
Data provided by logistics firm KN Seaexplorer suggests that, as of Monday, 132 ships remained stranded in the Gulf. The exact number is difficult to confirm, given reports that some vessels have switched off their transponders to conceal their location.
“You are very close to the Iranian coasts, so you don’t have much time to react, so you need a significant naval presence to be able to provide protection along the entire route,” Clerc said. “Personally, I find it hard to believe that this is the permanent solution to this situation, because the traffic is so important.”
Editor : C.A.
