Exporters Hit by Halted Bookings and Surging Rates

Thai exporters are facing mounting disruption after major shipping lines halted bookings through Middle East routes and sharply increased sea freight charges. Carriers have stopped accepting new bookings in high-risk corridors and are imposing surcharges of up to US$3,500 per container, while rerouting vessels around Africa’s Cape of Good Hope adds about 7,500 kilometres and up to 15 days to journeys. The Thai National Shippers’ Council (TNSC) warned of higher fuel consumption, port congestion and a potential shortage of empty containers in Asia within three to four weeks.

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The disruption follows fighting in the Middle East that began on February 28, when the United States and Israel attacked Iran, prompting Iranian strikes on US bases in several countries and an announcement by Iran to close the Strait of Hormuz. The strait carries about 20% of the world’s oil, averaging roughly 20 million barrels a day, while the Suez Canal handles around 10% of global trade, or 1.2 billion tonnes a year. Key maritime chokepoints affected include the Bab-el-Mandeb Strait, the Red Sea and the Suez Canal, with many carriers now diverting around the Cape of Good Hope, extending transit times from 20–30 days to 35–45 days.

TNSC chairman Thanakorn Kasetsuwan said the tensions were more likely to become a protracted but “manageable” risk than escalate into full-scale war in the short term, though global economic volatility would continue. He identified three main impacts: higher global energy prices, rising production and transport costs including war-risk premiums, and knock-on effects for Thai exports through freight volatility, insurance costs and potential baht weakness. Additional fees such as Transit Disruption Surcharge (TDS), Peak Season Surcharge (PSS) and War Risk Premium could reach US$1,500 per TEU (Twenty-foot Equivalent Unit) or US$3,500 per reefer container.

Kongrit Chantrik, TNSC executive director, said carriers were charging up to US$3,000 per loaded container, two to three times normal levels, and about US$1,000 to return empty containers. He said multiple countries depend on the Strait of Hormuz for oil exports, including around 70% for the United Arab Emirates, 90% for Saudi Arabia and 75% for Iran. Visit Limlurcha of the Thai Chamber of Commerce said most carriers had stopped bookings covering the Middle East, Persian Gulf and Red Sea, with limited dry cargo bookings available at surcharges of around US$2,000 per 20-foot container and no guarantee of transit times.

Commerce Minister Suphajee Suthumpun said Thailand’s direct trade exposure to conflict parties remains limited, with 2025 exports to the Middle East totalling US$12,475 million, or 3.67% of total exports, and no significant order cancellations reported. However, she confirmed that route insecurity, extended voyage times and higher insurance costs were already affecting Thai exporters, alongside tighter container availability. The Commerce Ministry has introduced six measures, including price monitoring, supply diversification, exporter support and close coordination with shipping lines.

The Nation reported that Thanakorn said if the situation remains contained, volatility could last three to six months, but if it spreads regionally, impacts could extend beyond six months and weigh on the global economy. Exporters have been urged to allow an extra one to two weeks for shipping, manage freight-rate and foreign exchange risks, review contract terms and diversify markets towards ASEAN, South Asia and the Far East. Authorities said the government is preparing further plans to help exporters maintain overseas markets amid ongoing geopolitical uncertainty.

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Adapted by ASEAN Now Nation 5 Mar 2026

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