Shipping routes through the Red Sea and Hormuz Strait are facing serious disruptions. To get crews to sail these dangerous waters, shipowners are now offering substantial bonuses—but many experienced seafarers are still refusing the work. This crew shortage is pushing up freight costs and creating unpredictable delays.
For you as an exporter, this means your shipping costs are likely to rise, and your goods may take longer to reach buyers. If you're planning shipments to Europe, the Middle East, or Africa in the coming months, you need to act now.
The Red Sea and Hormuz Strait are key shipping chokepoints. When crews won't sail these routes, ships must take longer alternate paths around Africa—adding weeks to delivery and significant cost. Shipowners pass these costs to exporters through higher freight rates.
Start by contacting your freight forwarder today. Ask for current rates and lock them in if they're reasonable. Ask about alternative routing options, even if they take longer—sometimes the savings justify the extra transit time. When negotiating with buyers, consider using FOB (Free on Board) terms, which shift shipping responsibility to them after goods leave your port, protecting you from further rate hikes.
One caution: don't wait for rates to "come back down." Geopolitical shipping disruptions can persist for months. Secure your shipping now while you still have options.