According to a recent report by Xeneta, ocean freight spot rates from Shanghai to Jebel Ali, the largest port in the Arabian Gulf, are experiencing a significant surge. These rates have jumped by 55% month-over-month, now sitting at $2,761 per FEU. This spike comes just before tensions escalated between Israel and Iran.
Peter Sand, Chief Analyst at Xeneta, noted that the ongoing conflict in the Middle East has led to increased risks and operational costs for shipping routes passing through this region. Factors contributing to these rising costs include enhanced security protocols and soaring bunker fuel prices. Additionally, vessels are consuming more fuel as they navigate through high-risk areas more quickly.
Considering these developments, Maersk has announced a temporary halt on port calls to Haifa—Israel’s busiest container terminal—operated by Adani Group. Although this port has been targeted by Iranian missiles recently, it reportedly remains undamaged. The CFO of Adani Group addressed rumors circulating on Iranian social media about fires resulting from missile strikes.
While carriers have yet to make any immediate service changes regarding routes into the Arabian Gulf according to Sand’s observations, he warns that there is a substantial risk of further escalation in this conflict which could disrupt supply chains and lead to even higher freight rates.
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