Market Pulse 2026 Week 10

The Strait of Hormuz remains effectively shut as the Iran crisis enters its second week, with more than 140 containerships still trapped in the Persian Gulf. Apart from 6 IRISL ships that continue to make Hormuz transits last week, only a single feeder ship operated by GFS made it out on 3rd March before a second ship was hit by a missile on 4th March. Carriers have suspended bookings in and out of the Persian Gulf, while cargo in transit are being discharged at contingency ports, with congestion beginning to build up across the ports in the Arabian Sea, Indian subcontinent and Southeast Asia.

Cape diversions have also increased after CMA CGM and Maersk both ended their Red Sea transits, with Maersk announcing a new Asia-Med-Red Sea link via the Cape of Good Hope using 16 ships of 10,000-16,000 teu to cater to the high demand to the Red Sea despite taking 49 days to arrive at Jeddah from Shanghai compared to 20-30 days on direct China-Red Sea services. Freight rates are rising across all routes as carriers apply new rate hikes and surcharges in the wake of the Iran crisis with VLSFO bunker prices surging above $800/ton for the first time since 2022.

Hormuz impact rises to 1.9% of global containership fleet in first week of Iran crisis
Ships waiting outside of the Strait of Hormuz have started to build up as ports in the Arabian Gulf struggle to cater to the increased demand. Salalah, Khor Fakkan, Fujairah, Sohar and Duqm have all seen increased vessel traffic with operations at Salalah partially disrupted last week following a drone attack. Carriers have also diverted to ports further away including Mundra, Pipavav, Colombo and Hambantota while several ships in transit are slowing down near these intermediate ports while they await further instructions.