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African Importers Face Higher Shipping Costs as U.S.-Iran Conflict Escalates

African Importers Face Higher Shipping Costs as U.S.-Iran Conflict Escalates
Thursday, 12 March 2026 04:45
  • Middle East conflict disrupts shipping routes, raising costs and delays
  • Major carriers impose conflict surcharges on routes to African ports
  • Detours, insurance hikes and oil prices threaten higher African inflation

The armed conflict between the United States and Israel on one side and Iran on the other is putting growing pressure on global supply chains. Longer detours, carrier surcharges and rising insurance premiums are pushing up maritime shipping costs and transit times, with potential knock-on effects for African shippers.

Several major carriers, including the world's three largest, have introduced new surcharges in recent weeks to offset the risks and operational costs tied to the security situation in the Middle East.

Danish carrier Maersk has introduced an Emergency Conflict Surcharge (ECS) on cargo moving to and from northern Europe, the Mediterranean and Red Sea ports, including Jordanian ports as well as Jeddah and King Abdullah Port in Saudi Arabia. The surcharges took effect on Friday, March 6, reaching $1,800 per 20-foot container and $3,000 per 40-foot container for dry cargo destined for Sudan and Djibouti. Refrigerated containers are charged at $3,000.

Italo-Swiss carrier MSC (Mediterranean Shipping Company) announced that, from March 5, it would apply a war surcharge on several routes linking Asia and the Gulf to African ports. Shipments from the Indian subcontinent to East Africa, Somalia, Mozambique and Indian Ocean islands are affected. Standard 20-foot dry cargo containers carry an additional charge of $500, while refrigerated units are surcharged at $1,000. Shipments from Gulf countries to Africa carry higher surcharges: $2,000 for a 20-foot container, $3,000 for a 40-foot container and $4,000 for refrigerated units.

French group CMA CGM introduced its own ECS from March 2, applying to cargo moving to or from several Middle Eastern countries and the Red Sea zone, including Iraq, Bahrain, Kuwait, Qatar, Oman, the United Arab Emirates, Saudi Arabia, Jordan, Egypt (Ain Sokhna port), Djibouti, Sudan and Eritrea. The surcharge stands at $2,000 per 20-foot dry container, $3,000 for a 40-foot dry container and $4,000 for refrigerated or special equipment containers.

On top of the conflict-related surcharges, carriers are also applying Emergency Bunker Surcharges (EBS), which are triggered when vessel fuel costs spike sharply. On Monday, March 9, MSC announced EBS of between $135 and $230 per container for shipments to East Africa, effective Monday, March 16.

Detours, Higher Insurance Premiums and Rising Oil Prices

Carriers say the rate adjustments reflect changes in shipping routes forced by the deteriorating security situation in the region. Attacks targeting certain vessels and Iran's announcement that it would close the Strait of Hormuz have led several shipping lines to avoid high-risk areas.

Maersk said it was temporarily suspending Suez Canal transits through the Bab el-Mandeb strait. Its routes linking the Middle East and India to the Mediterranean (ME11) and to the U.S. East Coast (MECL) are now being diverted via the Cape of Good Hope. Industry experts said the diversion adds roughly 12 days to journeys compared with the standard route through the Suez Canal.

Insurance costs are also a significant factor. According to the Financial Times, premiums for vessels operating in the Gulf could rise by half, from around $250,000 to $375,000 for a ship valued at $100 million. Separately, surging energy prices are pushing transport costs higher. On Sunday, March 8, 2026, oil prices crossed the $100-per-barrel mark for the first time in more than three and a half years.

Importers typically pass these additional logistics costs on to consumers through higher retail prices. If pressure on global supply chains persists, some African economies could face rising inflation.

A similar pattern emerged during the escalation of the Israel-Palestine conflict, which began in October 2023. In July 2024, UNCTAD reported that freight rates had risen by more than 100% on certain shipping routes. On the Shanghai-to-West Africa route, the average freight rate had climbed 137% since January, reaching $5,563 in July 2024, its highest level since August 2022.

Henoc Dossa 

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