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Oil markets began the week in a state of sharp volatility. After last week\u2019s strong rally, prices jumped again during Asian trading before easing slightly, reflecting the growing impact of escalating tensions in the Middle East on global energy and shipping routes.<\/p>\n
North Sea Brent crude, which had traded near $70 per barrel not long ago, climbed rapidly last week to around $90. The rally accelerated as markets opened in Asia on Monday, with prices briefly reaching $117 per barrel, a gain of roughly 20%. By early morning European time the price had fallen back somewhat, trading near $107 per barrel, though still far above levels seen only days earlier.<\/p>\n
The surge has already begun to filter through to consumers. In Sweden, diesel prices rose by roughly three kronor per litre at the pump during the week, including VAT, reflecting the rapid shift in oil markets.<\/p>\n
Behind the move lies a deepening crisis in the Middle East. Fighting continued through the weekend and attention has focused on attacks against strategic infrastructure, including oil facilities. Even more significant for global trade is the situation in the Strait of Hormuz, the narrow maritime corridor linking the Persian Gulf to global markets.<\/p>\n
Reports indicate that shipping traffic through the strait has almost entirely halted. The passage, through which a large share of the world\u2019s oil exports normally flows, has effectively been closed to commercial vessels.<\/p>\n
Shipping traffic collapses<\/strong><\/p>\n According to reports circulating in the shipping industry, the crisis intensified after a warning issued on February 28 by Iran\u2019s Revolutionary Guard to vessels transiting the strait. Ships were told the passage would be closed and warned of consequences if they attempted to proceed.<\/p>\n By the following morning traffic through the strait had reportedly fallen by around 80%, and by Monday the waterway was described as closed to ship movements.<\/p>\n The disruption has left a significant number of vessels stranded. Estimates cited in shipping analyses suggest that around 170 container ships carrying roughly 450,000 TEU of cargo are currently trapped inside the Persian Gulf without a clear route out. That represents roughly 1.4% of global container capacity.<\/p>\n Military and naval monitoring groups have reported that ships in the area have received direct radio warnings that transit through the strait is not permitted. The situation has also been referenced in communications from the European Union\u2019s naval mission responsible for safeguarding commercial shipping.<\/p>\n No easy detour<\/strong><\/p>\n The closure is particularly disruptive because there is no practical alternative route. When attacks in the Red Sea forced vessels to avoid the Suez Canal in 2024, shipping companies were still able to reroute around the Cape of Good Hope.<\/p>\n The Strait of Hormuz is different. If access to the Gulf itself is blocked, ships cannot simply take another path to reach destinations such as Dubai, Doha, Dammam or Kuwait. Cargo bound for those ports effectively has nowhere to go.<\/p>\n The consequences are already being felt across global freight markets.<\/p>\n Shipping lines halt bookings<\/strong><\/p>\n Major container carriers have begun suspending services to ports across the Gulf region while introducing emergency surcharges on cargo that might still move through alternative arrangements.<\/p>\n Maersk announced that it is temporarily suspending cargo booking acceptance for a number of destinations including the United Arab Emirates, Iraq, Kuwait, Qatar, Bahrain and Saudi Arabia (Dammam and Jubail). Cargo to or from these locations, or shipments routed through them, is affected. Oman is also included in the suspension except for the port of Salalah.<\/p>\n The company has also introduced an Emergency Freight Increase tied to the Hormuz disruption. The additional charge amounts to $3,000 per container for 40-foot and 45-foot dry containers, including the commonly used 40\u2019 High Cube containers widely used for lumber and wood products.<\/p>\n CMA CGM has taken similar steps. The French shipping group issued an advisory suspending bookings with immediate effect for several Middle Eastern destinations and introduced an Emergency Conflict Surcharge of $3,000 per 40-foot container.<\/p>\n Hapag-Lloyd has implemented a War Risk Surcharge for cargo moving to or through the Gulf. The surcharge is set at $1,500 per TEU, which translates into $3,000 for a standard 40-foot container.<\/p>\n Meanwhile MSC, the world\u2019s largest container carrier, has adopted an \u201cEnd of Voyage\u201d approach for shipments already moving toward Gulf ports. Under this system cargo may be discharged at the nearest safe port rather than continuing to the original destination. The company has also imposed a mandatory $800 surcharge per container.<\/p>\n These charges are not full freight rates but additional layers placed on top of normal shipping costs.<\/p>\n Wood cargo particularly exposed<\/strong><\/p>\n The disruption is particularly significant for the global timber trade. Large volumes of lumber, plywood, panels and packaging timber are transported in dry containers, frequently in 40-foot high-cube units to maximise volume.<\/p>\n For exporters of wood products, two immediate realities now shape the market: higher freight costs and restricted access to bookings.<\/p>\n Forwarding companies warn that war-risk surcharges, emergency cost increases and higher fuel costs are already being applied. At the same time, suspended services reduce available shipping capacity and complicate route planning.<\/p>\n DHL Global Forwarding noted in a situation update that alternative routings and reduced connectivity are likely to create congestion and equipment imbalances across global shipping networks.<\/p>\n Major trade routes affected<\/strong><\/p>\n Several important timber trade lanes are directly exposed to the disruption.<\/p>\n Cargo moving from the United States or Europe to the Middle East is affected by booking suspensions and emergency surcharges tied to Gulf destinations.<\/p>\n Shipments from China to the Middle East face similar restrictions. COSCO Shipping, China\u2019s state-owned container carrier, has reportedly suspended all new bookings on routes to and from Middle Eastern ports.<\/p>\n The disruption also affects flows in the opposite direction. Cargo from the Middle East bound for Europe, China or the United States may face the same operational constraints, including fewer accepted bookings and altered discharge plans.<\/p>\n Not every trade lane is affected in the same way. For example, shipping between the United States and China does not automatically fall under the Gulf surcharges unless the cargo touches Middle Eastern ports or transshipment hubs.<\/p>\n A freight market driven by security risks<\/strong><\/p>\n The current situation differs from normal fluctuations in freight rates. Rather than being driven by changes in demand or shipping capacity, the market is responding to a security crisis affecting one of the world\u2019s most sensitive maritime chokepoints.<\/p>\n For companies trading wood and other commodities, the immediate concern is not only the cost of shipping but the basic ability to move goods at all.<\/p>\n Exporters now need to confirm whether carriers are still accepting bookings to particular destinations, determine which emergency surcharges apply and assess whether shipments already at sea may be diverted.<\/p>\n With oil prices rising sharply, freight costs increasing and shipping routes restricted, the ripple effects are likely to spread beyond energy markets. For industries that rely heavily on container transport\u2014including the global timber trade\u2014the consequences may extend well beyond the Persian Gulf.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98196,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98193","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n