China Criticizes Shipping Firms on Iran War

The meetings reportedly focused on China's concerns about higher freight charges amidst the ongoing Iran war. These increased costs could add approximately $200 to a standard 20-foot shipping container, potentially raising freight costs by 15% to 20%. Maersk and MSC also recently took over operations of key terminals at the Panama Canal after Panama annulled concessions held by CK Hutchison, a Hong Kong-based company. This move followed a Supreme Court ruling and has been interpreted as part of the US-China rivalry over global trade routes. The disruption from the Iran war has significantly impacted Maersk, with many customers experiencing irregular deliveries. The closure of the Strait of Hormuz has forced companies to reroute vessels, leading to delays and increased costs. Maersk has suspended services connecting the Middle East to Asia and Europe. Emergency war-risk surcharges are now in effect for cargo connected to the Middle East. CMA CGM announced surcharges reaching $2,000 per 20-foot container and $3,000 per 40-foot container for Middle East destinations. MSC is applying a $2,000 per TEU war-risk surcharge for cargo shipped from the Arabian Peninsula to Africa and the Indian Ocean islands.