On July 14, 2026, the situation in the Strait of Hormuz deteriorated sharply. Iran announced the closure of the strait in response to a third round of US strikes, while simultaneously launching attacks on Bahrain, Kuwait, Jordan, Qatar, and Oman. Container shipping through the strait was effectively disrupted, and oil tanker passage faced serious risks.
Approximately 201 TP3T of oil is transported globally through this waterway, resulting in a significant impact.
Merchant ships attacked, insurance costs soar
On the same day, the Cypriot-flagged container ship GFS Galaxy was attacked and caught fire in the Strait of Hormuz, with severe damage to its engine room. One of the 11 Indian crew members on board is missing.
The Indian government has condemned the attack and called for protection for merchant ships. This incident will further increase insurance costs for merchant ships in the region, and the risk of shipowners refusing to sail is also rising. For cargo owners, this means that goods transported via the Straits may face longer waiting times and higher surcharges.
Trump proposes imposing a security fee on 20%.
Trump declared the United States the "Guardian of the Strait of Hormuz" and proposed imposing a 20% security fee on all goods passing through the Strait of Hormuz.
If this policy is implemented, shipping costs across the strait will increase significantly. However, the specific implementation plan and international support are still unclear, and its future development warrants attention.
Freight rates have peaked and stabilized, but are still more than 200% higher than before the crisis.
According to Xeneta's freight rate data on July 10:
- Far East → US West: $7,069/FEU (Weekend change -0.1%)
- Far East → US East: $8,808/FEU (Weekend change +0.3%)
Freight rates have peaked and stabilized after the injection of shipping capacity, but are still up 2321 TP3T-2761 TP3T compared to before the crisis at the end of February. With the strait closing again, freight rates may rise again.
IMO adopts resolution on protection of shipping lanes
The 137th IMO Council adopted a resolution on "Protection of Critical Shipping Routes," spearheaded by Singapore and co-sponsored by 30 countries. The resolution reaffirms the principles of freedom of navigation for merchant ships and the safety of seafarers under international law.
Although this is a document outlining principles, it provides a multilateral framework for subsequent waterway safety management.
What should foreign trade companies pay attention to?
- Transportation timeThe alternative route via the Red Sea and the Suez Canal has been in use for months, and the closure of the strait will further extend the detour time.
- Shipping costsCurrent freight rates remain high and may rise again in the short term.
- Insurance surchargeShip attacks and strait closures will drive up war risk premiums, ultimately borne by cargo owners.
- Limited cabin availabilityShipping companies may further adjust routes and capacity, intensifying competition for cargo space.
It is recommended to confirm the shipping plan with the freight forwarder as soon as possible, and allow extra time and budget.
source:Container News