Energy shock lifts freight costs
U.S. gasoline averages topped $4/gal — the highest since 2022 — as Iran war disruptions push oil and shipping volatility higher, squeezing tenant operating budgets and freight margins. Ships and cargo are also piling up at ports, with the World Food Programme flagging roughly 70,000 tonnes of food stuck at terminals — a reminder that shipping congestion and fuel shocks are structural, not just episodic. ( )
Global container spot costs rose sharply this month, with Drewry’s World Container Index increasing 5% to $2,279 per 40‑ft container in the March 26 assessment. (drewry.co.uk) Asia‑Europe lanes showed the biggest jumps: spot rates from Shanghai to Genoa climbed about 12% to $3,474 per 40‑ft while Shanghai‑Rotterdam ticked up to roughly $2,552 per 40‑ft. (mtsinsights.com) Tanker markets moved far more violently than dry bulk — the Baltic/LSEG VLCC benchmark for Middle East‑to‑China voyages topped roughly $423,736 per day as ships rerouted and voyage duration increased. (lloydslist.com) Several leading marine insurers and P&I clubs withdrew war‑risk cover effective in early March, a shift that coincided with industry tracking showing about 150 tankers holding outside the Strait of Hormuz. (marineinsight.com) Carriers enacted blunt commercial responses: MSC suspended worldwide bookings to the Middle East and redirected vessels to safe‑shelter zones, while CMA CGM introduced and has since adjusted Emergency Fuel/Conflict surcharges on affected trades. (msc.com) Higher bunker and diesel prices are filtering into land logistics — U.S. on‑highway diesel averaged roughly $5.04–$5.07 per gallon in March, and DAT reports national van spot rates near $2.65 per mile after consecutive monthly gains. (cnbc.com) The World Food Programme warns the transport and fuel shock could amplify humanitarian need, estimating that an extended Middle East conflict could push about 45 million more people into acute hunger by mid‑year. (wfp.org)
