The recent conflict involving Iran may have moved off the front pages, but for international shippers the effects are far from over.
While the ceasefire has reduced immediate concerns about vessel safety in the Strait of Hormuz, global supply chains are still adjusting to the disruption. Importers and exporters should not assume that freight markets will simply return to normal. In fact, several changes introduced during the crisis are likely to remain in place for some time.
- Longer Transit Times Are Here to Stay
One of the most noticeable changes is the continued diversion of container vessels away from the Suez Canal.
Although the canal remains open, many shipping lines continue to route vessels around Africa’s Cape of Good Hope because of ongoing uncertainty surrounding the Red Sea region and concerns about schedule reliability. For shippers, this means transit times between Asia and Europe can remain 10–14 days longer than traditional routings.
Longer voyages do not just delay deliveries. They also tie up vessels and containers for extended periods, reducing available capacity across the global shipping network. Even cargo moving on routes far removed from the Middle East can feel the effects.
- Watch for New Surcharges Affecting Landed Costs
Many importers focus on the base freight rate when reviewing quotations, but the real impact often lies in the additional charges that accompany it.
During the conflict, shipping lines introduced a range of emergency surcharges to recover increased operating costs. While some fuel prices have eased, many of these charges remain in place.
Examples include:
- Emergency Bunker Adjustment Factors (eBAF) to offset higher fuel costs.
- Equipment Imbalance Surcharges (EIS) where carriers must reposition empty containers from surplus locations to areas experiencing shortages.
- Port Congestion Surcharges applied at terminals experiencing significant delays and operational bottlenecks.
- War-risk and insurance-related costs that continue to influence pricing on certain trade lanes.
These charges can add hundreds of dollars per container and may vary significantly between shipping lines, sailing dates and destinations.
For importers, this means landed costs can fluctuate even when freight rates appear stable. Understanding exactly what is included in a freight quotation has become more important than ever.
- Supply Chain Planning Needs a New Approach
Perhaps the most significant long-term lesson from the conflict is that traditional “just-in-time” inventory models are becoming increasingly difficult to sustain.
Modern supply chains are being forced to prioritise resilience alongside cost efficiency. Businesses that rely on critical inventory may need to place orders earlier, carry additional safety stock, and allow greater flexibility in delivery schedules.
There are several practical strategies that can help:
- Place orders further in advance to accommodate longer transit times.
- Consolidate smaller shipments into larger consignments where possible.
- Consider hybrid sea-air solutions for urgent cargo.
- Explore intermodal options combining ocean, rail and road transport.
- Diversify ports of loading and discharge when congestion becomes a concern.
The companies adapting most successfully are not necessarily those spending more on freight—they are the ones planning earlier and making informed decisions before problems arise.
Staying Ahead of the Changes
The post-war freight environment is likely to remain dynamic for some time. Transit times, container availability, fuel costs and surcharges can all change quickly as shipping lines continue to adjust their networks.
Now is an ideal time to review your supply chain assumptions and discuss alternative strategies with your freight forwarder.
At Colless Young, we closely monitor developments across global shipping markets and help our clients navigate changing freight conditions. Whether your cargo moves by sea, air, or a combination of both, we can assist with route planning, transit comparisons, freight quotations and supply chain solutions designed to keep your shipments moving.
Talk to Andrew at Colless Young 📞 +61 7 3890 0800 📧 enq@collessyoung.com.au
Also see our recent article: Container Imbalance: Repositioning Empties Amid Global Disruption
With more than 45 years of experience in international freight forwarding and customs brokerage, we’re here to help you stay in control of your imports and exports—whatever changes the market may bring.
