Maersk and Hapag-Lloyd suspend key shipping routes due to Iran conflict

Investing.com - A.P. Moller-Maersk and Hapag-Lloyd have suspended shipping routes passing through the Middle East, the latest sign of disruptions in global trade flows caused by ongoing conflicts in Iran.

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Danish container shipping giant Maersk stated in a release that after assessing risks and reviewing operations related to the escalation of the conflict in several neighboring Middle Eastern countries, “we have decided to temporarily suspend the FM1 route (connecting the Far East to the Middle East) and the ME11 route (connecting the Middle East to Europe).”

Maersk said this decision is a “precautionary measure” to ensure the safety of its personnel and vessels, “while minimizing operational disruptions to our broader network.”

The company previously suspended routes through the Suez Canal last week after the U.S. and Israel jointly targeted Iran, rerouting ships around the southern tip of Africa.

Navigation through the Strait of Hormuz has also been halted. This narrow waterway in southern Iran transports about one-fifth of the world’s oil. Additionally, bookings for certain cargoes from countries such as Saudi Arabia, the UAE, Oman, and Qatar have been paused. These countries, along with other Middle Eastern nations, have previously been targeted by attacks from Iran.

Meanwhile, German shipping group Hapag-Lloyd announced on Friday that it will suspend several of its own services.

Hapag-Lloyd stated in a release: “Due to the ongoing conflict in the Middle East and its impact on regional operations, we will temporarily adjust parts of our network to maintain reliable service and operational stability.”

Markets continue to worry that the Strait of Hormuz supply could be cut off, causing oil and gas prices to surge this week. Since the conflict began, vessel traffic on both sides of the strait has piled up as shipping companies fear for crew safety and struggle to secure insurance to support navigation.

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