Shipping Costs From Iran Conflict Will Be Passed to Consumers, Maersk CEO Says

Rising transportation costs caused by the conflict involving Iran are likely to be passed on to consumers worldwide, according to the chief executive of global shipping giant Maersk.

Vincent Clerc said the Danish logistics company adjusts its pricing to reflect changes in fuel costs, meaning higher shipping expenses eventually filter through the supply chain to customers and ultimately to shoppers.

“If fuel prices rise or fall, we have mechanisms that pass those changes on to our customers,” Clerc said. “Ultimately, these increases will be reflected in the prices consumers pay.”

Global oil markets have been volatile since the conflict involving the United States and Israel against Iran escalated. Oil prices surged to nearly $120 per barrel during the early stages of the conflict before easing. Even after the decline, crude prices remain close to $87 per barrel, roughly 20 percent higher than before the hostilities began.

Maersk is one of the world’s largest container shipping companies and plays a critical role in transporting everyday goods such as clothing, toys and electronics across global markets.

Disruption to Key Shipping Routes

The conflict has severely affected maritime traffic through the Strait of Hormuz, a strategic waterway through which about one-fifth of the world’s oil supply normally passes.

Iranian officials have justified restricting access to the route, with government spokesperson Fatemeh Mohajerani stating that the country must maximise all available resources while it remains in a state of war.

At the same time, many major shipping companies have been avoiding the Red Sea due to ongoing security threats in the region.

As a result, shipping firms including Maersk have been forced to reroute vessels around the Cape of Good Hope. The longer journey increases fuel consumption and operational costs, further driving up freight prices.

Rising Costs for Global Trade

According to Clerc, the additional costs currently amount to roughly $200 for a standard 20-foot shipping container. This could translate into a 15 to 20 percent increase in freight charges on some shipping routes.

Other major shipping companies such as MSC Mediterranean Shipping Company and Hapag-Lloyd have also raised their shipping fees in response to the disruptions.

The situation has already drawn attention from governments concerned about the impact on trade. Officials in China recently summoned executives from Maersk and another shipping firm to discuss rising costs and their international shipping operations.

Impact on Supply Chains

Clerc said the disruptions have had a significant impact on Maersk’s operations, with many customers facing delays in receiving goods.

The situation is particularly challenging in regions that rely heavily on imported food. Logistics companies are working to ensure essential supplies continue to reach supermarkets instead of sitting idle in ports or on vessels.

Transporting goods by land through trucks and rail routes has helped keep supply chains moving, but Clerc acknowledged that land routes cannot handle the same volume of cargo as ocean shipping.

While essential goods are still moving, some exports – including petrochemical products – may face delays as shipping capacity is prioritised for more critical supplies.

Calls for a Diplomatic Solution

Some governments, including those of France and the United States, have suggested that naval escorts could help protect commercial vessels and reopen shipping lanes.

However, Clerc said the long-term solution lies in diplomacy rather than military protection.

He argued that a negotiated agreement between the United States, Israel and Iran would be the best way to restore safe navigation in the region.

“Ultimately we need to get back to a situation where freedom of navigation and peaceful passage are restored,” he said.

Data from logistics tracking firm Kpler Seaexplorer indicated that more than 130 vessels remained stuck in the Persian Gulf as of early March. Some ships have reportedly switched off their tracking systems to conceal their positions amid security concerns.

The latest disruption comes just weeks after shipping companies had begun cautiously returning to the Red Sea route following years of threats from Houthi attacks linked to the Israel–Hamas conflict.

For now, shipping companies say they will continue to prioritise the safety of their crews while navigating one of the most challenging periods for global trade in recent years.