Container vessel traffic in the Middle East remains unaffected by the escalation in the Israel-Iran conflict since 13 June with carriers maintaining their scheduled calls at Middle East Gulf and Israeli ports, while Suez transits have also been retained. Zim affirmed the continuation of its services to the Israeli ports of Ashdod and Haifa while CMA CGM is still proceeding to reroute 3 of their Europe-Indian subcontinent/Far East ships through the Suez this month despite the rising tensions. However, other main carriers are still keeping their ships away from the Red Sea with no imminent return to the Suez route expected until the security situation in the region is resolved.
SCFI rates reversed their recent gains as transpacific carriers rolled back their rate hikes as demand to the US failed to match the capacity additions over the past 4 weeks but charter rates remain at elevated levels with carriers unwilling to give up tonnage given the current uncertainties.
Johnson Leung
Closure of Strait of Hormuz could impact 3.4% of global container volumes
Rising tensions in the Middle East Gulf following the escalation of hostilities between Israel and Iran on 13 June 2025 could threaten up to 3.4% of global container volumes if it leads to the closure of the Strait of Hormuz. The UAE will be worst hit in such an event as the 21.7m TEU that its ports handle account for the majority of the 33.2m TEU of total container volumes in the region. However, the risk of a blockage by Iran remain low at the moment as Iranian ports rely on access the Gulf for the 2.5m TEU of container cargo that they handle, including cargo that are transshiped via UAE ports.
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