BUSINESS

Oil Tankers Stranded, Freight Rates Soar as Hormuz Shuts Down

Published: Mar. 3, 2026 4:54 a.m. GMT+8

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A vessel sails in the Strait of Hormuz, Oman, on March 1, 2026. Photo: VCG

Commercial vessel traffic through the Strait of Hormuz had nearly ground to a halt by Monday, with only four ships exiting the Persian Gulf, paralyzing Middle East logistics after U.S. and Israeli airstrikes on Iran triggered swift retaliation from Tehran.

Only four ships passed through the Strait by 9 p.m. local time on March 2, all departing the Persian Gulf, according to shipping data compiled by Caixin. In a sharp break from the prewar daily average of about 130 vessels, none entered the waterway, and traffic stopped entirely for an unusual 10-hour stretch earlier in the day.

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Commercial vessel traffic through the Strait of Hormuz has nearly stopped after U.S. and Israeli strikes on Iran, with only 4 ships exiting the Persian Gulf by March 2, down from a daily average of 130.
Over 170 container ships and 100+ oil tankers are stranded, causing severe disruption in global energy and logistics; shipping rates have surged by up to 35%, with additional emergency surcharges imposed.
Major regional ports have closed or remain idle; import-dependent Gulf economies face supply shortages.

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Who’s Who

Cosco Shipping Technology Co.: Cosco Shipping Technology Co. has a platform that showed a significant drop in traffic through the Strait of Hormuz on Sunday, with a 63% decrease to 44 vessels and a 76% fall in cargo volumes from the previous day. Additionally, global shipping giant Cosco Shipping has halted its transits through the Strait due to the perilous conditions.

MSC: MSC, also known as Mediterranean Shipping Company, is a global shipping giant that has halted transits through the Strait of Hormuz due to the current conflict. This decision was made in response to the paralyzing of Middle East logistics after US and Israeli airstrikes on Iran triggered retaliation from Tehran.

CMA CGM: CMA CGM has halted transits through the Strait of Hormuz due to regional conflict. The company imposed an emergency conflict surcharge of $2,000 per TEU and $3,000 per FEU, which now exceeds base freight rates, with surcharges for refrigerated containers reaching $4,000 per FEU.

Maersk: Maersk is one of the global shipping giants that has halted transits through the Strait of Hormuz due to the escalating conflict. This cessation of services, alongside other major shipping lines like MSC and CMA CGM, is contributing to the paralysis of Middle East logistics and severe disruptions to trade flows.

Cosco Shipping: Cosco Shipping, a global shipping giant, has halted its transits through the Strait of Hormuz due to regional conflict. Data from its platform, Cosco Shipping Technology Co., indicated a significant decline in traffic and cargo volumes in the Strait, with throughput capacity nearing zero. This action contributes to the broader paralysis of Middle East logistics.

Hapag-Lloyd: Hapag-Lloyd, a global shipping giant, has halted its transit services through the Strait of Hormuz due to the ongoing crisis. This action mirrors similar decisions by other major shipping companies, contributing to the severe disruption of maritime logistics in the Middle East.

Kuehne+Nagel: Kuehne+Nagel (德迅) is a logistics firm that confirmed the halt of container traffic through the Strait of Hormuz. The company issued a notice stating that the Strait was closed and that it is actively working to identify where cargo will be stranded to ensure service continuity. This comes amid severe disruptions to Middle East logistics due to escalating conflicts.

PetroChina Co. Ltd.: PetroChina Co. Ltd. is one of China's three state-owned oil majors. Following the severe disruption in the energy sector caused by the closure of the Strait of Hormuz, its shares surged to their daily trading limits. This highlights the significant impact geopolitical events can have on major energy companies.

Sinopec: Sinopec, also known as China Petrochemical Corporation, is one of China's state-owned oil majors. Following the severe disruption in global energy supply caused by the closure of the Strait of Hormuz, Sinopec's shares, along with PetroChina Co. Ltd. and China National Offshore Oil Corp., surged to their daily trading limits.

China National Offshore Oil Corp.: Shares of China National Offshore Oil Corp. (CNOOC) **surged to their daily trading limits.** This occurred amidst severe disruption in the energy sector following the effective closure of the Strait of Hormuz, which led to a significant jump in Brent crude futures.

Goldman Sachs: Goldman Sachs predicted severe disruptions to tanker operations. They noted on Sunday that insurers might cancel existing policies or increase premiums by up to 50% in the coming days, due to the effective closure of the Strait of Hormuz.

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What Happened When

By February 27, 2026：: The Shanghai Containerized Freight Index reported container shipping rates from China to the Persian Gulf rose 35% to $1327 per TEU.

Early Sunday, March 1, 2026：: Dubai’s Jebel Ali Port suspended operations after being struck, but later reopened four berths.

After early Sunday, March 1, 2026：: Oman’s Port of Duqm and all ports in Bahrain remained shut after drone attacks and strikes.

Sunday, March 1, 2026：: Cosco Shipping Technology Co. reported vessel traffic through the Strait of Hormuz had already fallen 63% from the previous day to 44 vessels, with cargo volumes dropping 76%.

Sunday, March 1, 2026：: Goldman Sachs said tanker operations faced severe disruption, with insurers canceling or raising premiums by as much as 50% in the coming days.

Monday, March 2, 2026：: Throughput capacity at the Strait of Hormuz was projected to slip below 10%, approaching zero.

Effective Monday, March 2, 2026：: CMA CGM imposed an emergency conflict surcharge of $2,000 per TEU and $3,000 per FEU.

As of 8 p.m., Monday, March 2, 2026：: No oil tankers had passed through the Strait of Hormuz; over 100 tankers were stranded on either side.

By 9 p.m. local time on March 2, 2026：: Only four ships exited the Persian Gulf through the Strait of Hormuz; none entered, and traffic had stopped entirely for a 10-hour stretch earlier in the day.

AI generated, for reference only