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Logistics industry braces for sharp rise in rerouting cost
The New Indian Express Kottayam
|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.
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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