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Logistics industry braces for sharp rise in rerouting cost

The New Indian Express Kottayam

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March 14, 2026

AS the Iran-Israel conflict continues for more than 10 days, the logistics industry is bracing for a sharp rise in shipping and transshipment costs, with additional charges likely to increase by up to $1,000 per 20-ft equivalent unit (TEU) if consignments are rerouted through the Cape of Good Hope.

- SANAL SUDEVAN @ Chennai

Industry executives said the evolving security risks in key maritime corridors are forcing shipping lines to avoid traditional routes via the Suez Canal and the Strait of Hormuz, which handle a significant portion of global container traffic.

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AS the Iran-Israel conflict continues for more than 10 days, the logistics industry is bracing for a sharp rise in shipping and transshipment costs, with additional charges likely to increase by up to $1,000 per 20-ft equivalent unit (TEU) if consignments are rerouted through the Cape of Good Hope.

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