If you've been watching your ocean freight quotes climb week after week, you're not imagining things. The Strait of Hormuz crisis just keeps adding new layers of cost pressure-and the latest chapter comes from one of the industry's biggest players.
Evergreen Marine just rolled out a two-stage freight rate increase for May. The first wave hit transpacific routes at the start of the month. The second adjustment came in mid-May, right after China's Labor Day holiday. On routes like Far East to U.S. West Coast, rates have already climbed to around $2,722 per FEU-up more than 15% month-on-month. And if you think that's where the climb stops, industry analysts say there's more coming.
Why your shipping bill is about to get much bigger
Here's what's driving the spike-and why it matters to your bottom line.
First, fuel. Bunker costs have surged nearly 70% since the conflict escalated in late February, with very low sulphur fuel averaging 856pertonneasoflateMay[reference:2].MajorcarrierslikeMaerskarereportedlyfacinganextra856pertonneasoflateMay[reference:2].MajorcarrierslikeMaerskarereportedlyfacinganextra500 million a month in fuel-related expenses, and that money has to come from somewhere. Hapag-Lloyd is paying an extra €50 to €60 million per week. All those costs are getting passed straight to shippers-meaning you.
Second, capacity is shrinking fast. Kpler data shows 53 container vessels are currently trapped inside the Persian Gulf, with 79% still unable to exit two months after the crisis started. That's tens of thousands of TEUs effectively removed from global rotations. MSC, CMA CGM, and multiple others have vessels stuck inside, and carriers like Evergreen, Yang Ming, ONE, HMM, and Wan Hai have reported zero successful exits from the strait so far.
Third, the rerouting effect. With the strait effectively closed, cargo is being forced onto longer routes-most notably around the Cape of Good Hope, adding weeks to transit times-or diverted to alternate hubs that are now operating far beyond their capacity.
The bottom line? Spot rates from Shanghai to the Persian Gulf have jumped about 320% since February, hitting $4,131 per TEU-surpassing even the pandemic-era peak.
So what can you actually do about it?
This is where having the right logistics partner makes all the difference. At XMAE Logistics, we've spent more than a decade building the kind of adaptability that large carriers struggle to match when black swan events hit.
One of the biggest advantages we bring to the table right now is our IATA, FIATA, FMC, and NVOCC licenses. In a market where some freight forwarders are struggling just to keep bookings moving, being a fully licensed operator means we have the regulatory standing to secure space, negotiate rates directly with carriers, and keep your cargo flowing even when smaller players are being pushed to the back of the line.
Our network of over 100 overseas agents gives us eyes and boots on the ground across multiple trade lanes. When one route gets blocked or a port becomes too congested, we don't waste days scrambling for alternatives-we've already mapped out plan B, C, and D.
And here's the part that really matters right now: we're not a one-trick pony. Whether you need ocean freight, air freight, rail, or a creative multimodal solution that combines all three, we handle it all under one roof. That flexibility is gold when traditional shipping corridors become unpredictable. Need to shift a time-sensitive shipment from sea to air at the last minute? We can make that happen. Need to reroute cargo through a different transshipment hub to dodge congestion? We've got the local contacts to execute it.
A word on what's next
The Strait of Hormuz situation remains highly fluid. Recent ceasefire discussions between the U.S. and Iran have raised hopes of a possible reopening, but shipping traffic through the strait has reportedly slowed to near-total pause levels, and analysts warn that even if the strait reopens soon, the structural disruption could take months to unwind.
Drewry's Simon Heaney summed it up well: "Trade finds a way," but increasingly, it's finding longer, more complex, and more expensive routes.
The takeaway for your business
You can't control geopolitical events or fuel prices. But you can control who handles your logistics when things go sideways.
If you're watching your freight budget get blown apart by surcharges and rerouting costs, it's time to work with a forwarder that actually has the licenses, the network, and the real-world experience to navigate a crisis like this.
At XMAE Logistics, we're not just booking space on ships-we're engineering solutions. Door-to-door, DDU, DDP, EXW, air, sea, rail, or any combination you need. We deliver competitive rates without cutting corners, and we've been doing it for over a decade.
�� Ready to stabilize your shipping costs? Contact us today for a free consultation and see how we can keep your cargo moving-whatever the Strait throws at us.
