Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
The oil tankers are seen at the Khor Fakkan container terminal, the only natural port in the execution of the region and one of the main ports of containers in the Sharjah emirate, along the Hormuz Strait, a navigable track through which a fifth of world oil production passes on June 23, 2025.
Giuseppe Caccace | AFP | Getty images
Oceanic French rates to the port of Khon Fakkan to the United Arab Emirates increase Israel continues to attack Iran And Iran reported its First attack on US military basesAfter a weekend that saw They knock on Iranian nuclear targets.
Shanghai’s prices in Khor Fakkan, which is located on the coast of the United Arab Emirates on the Indian Ocean, is up 76% compared to mid-May, according to the ocean freight rate data followed by the Xeneta freight intelligence platform. The average punctual rates have reached $ 3,341 per unit equivalent of forty feet (fire.)
The port of Khor Fakkan is located outside the Hormuz Strait. Due to its location, the port is considered one of the most important transhipment centers for the Persian Gulf, the Indian subcontinent, the Gulf of Oman and the Eastern African markets.
“The region’s sender acted cautious as the level of risk has gradually increased,” said Peter Sand, chief expedition analyst at Xenenta. “The sender has been the loading cargo in recent months, to strengthen the supply chain for disruptions unfavorable to the flow of containerized goods.”
The port of Khor Fakkan has arrived at 81 ships in the past 24 hours, and 51 ships are expected to arrive in the next 30 days, according to Vessefinder.
The conflict in the Middle East has Safety risks of high vesselswhich added to operational costs. The ships also move faster, which causes more fuel used, which also adds to costs.
The Parliament of Iran voted to approve a closure of the Hormuz Strait Sunday, but that may not follow the movement, according to many experts. He should target ships to attack or seize in the context of his reprisal plans, including ships showing public affiliation in the United States, according to the maritime security company Ambrey.
A large oil operator, Frontline, recently declared that he would not accept any new contract requiring a trip to the Strait of Hormuz.
THE oil market exchanged below Monday and the stock market The reaction to climbing in the conflict was attenuated. But Sand said that the spread of oceanic freight rates is an indicator of risk and uncertainty. The higher the propagation, the more the indication of market volatility and potential risks for sender. “For time like this, market spread widens,” said Sand.
Sea -owners with a more urgent need to move goods to protect supply chains pay prices and higher supplements that are pushed by ocean carriers. It is generally a situation of small sender with less negotiation power to ensure that their goods are moved. Larger volume shipowners have more negotiation power and can push transporters demanding high rates. This disparity in the negotiation of power leads to the broader propagation of shipping rates at different ends of the freight market.
This propagation is up $ 50 to $ 1,101 in the last 40 days (from May 14 to June 23), according to Xeneta.
“Propagation shows the difference between small sender, those without much negotiation power, compared to freight rates paid by larger and stronger sender,” he said.
