US exporters struggle with container tracking and rising costs as carriers suspend services through the Strait of Hormuz due to the Iran conflict.
US exporters are struggling to track containers bound for the Middle East after carriers halted services through the Strait of Hormuz due to the war with Iran, reports New York's Journal of Commerce.
Mediterranean Shipping Co (MSC) invoked an end-of-voyage clause on shipments to Jebel Ali, Dubai, allowing containers to be discharged at the next available port and adding an US$800 surcharge. Forwarders said the move has left shippers uncertain about cargo destinations and facing higher costs.
Stephen Zambo of AGL Group said he has about 70 containers with MSC and three on the ONE Majesty, which was damaged in an attack but continues its voyage. He warned customers of delays and rising surcharges as carriers redirect cargo.
MSC handles about half of US-Middle East volumes, or 290,000 TEU annually. Maersk and CMA CGM are the next largest carriers. CMA CGM has reopened bookings for ports outside the strait, including Khor Fakkan, Sohar, and Jeddah, though risks remain from Houthi rebels in the Red Sea.
Exporters said most cargo can be sold elsewhere, but higher oil prices are raising costs. Ecolab imposed a 10 to 14 percent energy surcharge after crude futures topped US$100 per barrel. Shippers of specialized products such as softwoods face limited alternatives.
Industry executives said fuel surcharges are escalating across trades, and carriers are reluctant to commit to rates. Some exporters are reviewing routes through Egypt's Port Said to avoid the warzone, but concerns remain over how long the conflict will disrupt supply chains.
