Maersk Halts Key Shipping Routes as Iran Conflict Escalates, Disrupting Global Trade
DUBAI, United Arab Emirates – Danish shipping giant Maersk has temporarily suspended two vital trade routes connecting the Middle East with Europe and Asia, a move signaling escalating concerns over the conflict involving Iran and its potential to severely disrupt global supply chains. The decision, announced Friday, impacts services linking the Gulf region to key markets in the Far East and Europe.
The company cited the need to ensure the safety of its personnel and vessels as the primary driver behind the precautionary measure. Maersk stated it is finalizing details for the final eastbound voyages on the ME11 [Middle East-Europe] and FM1 [Middle East-Far East] routes and will provide updates as soon as possible.
Beyond the route suspensions, Maersk is also halting shuttle services within the Gulf region. The ME1 service, connecting the Middle East with Northern Europe, will now bypass Dubai, making stops only in Oman and then continuing to India and Morocco.
The disruptions come amid threats from Tehran regarding vessels navigating the Strait of Hormuz, a critical waterway for global energy supplies. Approximately 20% of the world’s oil and gas passes through the strait, originating from Iraq, Saudi Arabia, Kuwait, Bahrain, the United Arab Emirates, and Qatar. Currently, at least 147 container ships are reportedly stranded in the Persian Gulf, awaiting safer passage.
Maersk’s move is being closely watched as a bellwether for global trade. The company’s actions add to growing supply chain disruptions following recent strikes against Iran. Other major shipping lines, including MSC and CMA CGM, have also abandoned plans to resume using the Suez Canal, opting instead for the longer route around the southern tip of Africa. MSC has temporarily halted all bookings for the Middle East.
These changes are already causing congestion at ports, throwing shipping schedules into disarray, and driving up freight rates.
Despite the turmoil, shares in Maersk were trading slightly higher on the NASDAQ Copenhagen Exchange on Friday afternoon, closing at $2,637 a share.
