Container freight rates rise due to escalating crisis in West Asia

12-Jun-2026 05:46 PM

Kandla: The resumption of conflict involving Iran, the US, and Israel in West Asia has not only heightened the risk of a global energy crisis but has also nearly doubled container shipping costs. Vessel movement through the Strait of Hormuz is stalling, and shipping companies are becoming reluctant to send their ships through the region.

According to experts, freight rates for containers shipped from Asia to the US have surged sharply due to rising fuel costs and increased demand from importers. Fearing further hikes in freight rates in the near future, importers are rushing to expedite shipments.

The US is a key trading partner for India, and the rise in container freight rates could prove significantly detrimental. Other Asian nations will also be affected. If the conflict between the US and Iran persists, it could drive up global market prices for various agricultural and food products.