How The Iran War Is Already Making Shipping More Expensive

TL;DR

Red Sea freight traffic has shut down, forcing ships onto longer, costlier routes around Africa.

Key Points

• 1.The detour via Cape of Good Hope adds 2,000+ nautical miles (15% longer) to routes like Shanghai–New York, increasing fuel costs and exposure to weather delays.
• 2.Major carriers Maersk and Hapag-Lloyd are charging conflict surcharges of $1,500+ per shipment, on top of rising fuel surcharges driven by the conflict itself.
• 3.US East Coast imports most at risk: oil, plus aerospace, auto, and pharmaceutical goods from Europe, which account for 50%+ of those import categories arriving at East Coast ports.