As of March 2026, container shipping costs are increasing as vessels divert from the Strait of Hormuz and the Suez Canal due to escalating regional conflict. The rerouting of container ships around the Cape of Good Hope is extending voyage times and raising fuel consumption across global trade lanes. These operational shifts are unfolding in real time as carriers suspend services into high-risk areas and reposition fleets to safer routes. Consequently, container shipping costs are becoming less about base freight rates and more about embedded inefficiencies, fuel surcharges, and disrupted network reliability.
Tom Beney, Senior Vice President of Ocean Freight at StoneX, oversees global freight strategy across tanker, dry bulk, and container markets. With direct exposure to shipowners, charterers, and bunker suppliers, his perspective reflects front-line insight into how rerouting decisions and fuel constraints are reshaping container shipping costs this month.
Key Themes from the Discussion
Container vessels are rerouting around the Cape of Good Hope, increasing ton miles and fuel consumption.
Fuel surcharges are rising as bunker costs climb and availability tightens in major hubs including Singapore.
Blank sailings and force majeure declarations are disrupting reliability across Middle East trade routes.
Container Shipping Networks Extend Ton Miles and Raise Costs
Container shipping networks are lengthening as carriers avoid high-risk corridors in the Middle East. Tom Beney states that vessels "will avoid the Suez Canal and they'll go around the Cape of Good Hope", resulting in a sharp increase in ton miles and fuel burn per voyage. Consequently, container shipping costs rise not only because of higher bunker prices but also because each round trip consumes materially more fuel and vessel time. This structural extension of routes reduces fleet efficiency and tightens effective capacity, increasing pressure on freight contracts and landed cargo costs.
Fuel Surcharges and Service Suspensions Reshape Trade Flows
Container shipping costs are also increasing due to contractual and operational disruptions into the Persian Gulf and Red Sea. Beney warns that shippers should expect "force majeure, which is a cancellation of the shipping contract" and a "very high escalation in your fuel surcharge" for cargo entering affected zones. As a result, some container trade flows are drying up or shifting to overland routes through Turkey, Egypt, or India, introducing additional time and logistical complexity. Over time, these adjustments risk embedding slower and more fragmented supply chains, even if headline freight indices do not fully capture the operational strain.
Frequently Asked Questions
Why are container ships avoiding the Suez Canal?
Container ships are avoiding the Suez Canal and Persian Gulf routes due to heightened security risks linked to the regional conflict. Rerouting around the Cape of Good Hope increases voyage distance and fuel consumption, raising overall shipping costs.
Are container fuel surcharges rising globally?
Fuel surcharges are increasing broadly as bunker prices climb and availability tightens. The impact is especially pronounced for cargo moving into or near the conflict zone.
How do blank sailings affect container supply chains?
Blank sailings reduce service frequency and network reliability. This creates scheduling uncertainty for importers and exporters and can lengthen delivery times.
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--- Expert: Tom Beney, Senior Vice President of Ocean Freight
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