Ocean freight rates to the Port of Khor Fakkan in the United Arab Emirates are surging as Israel continues to attack Iran and Iran reported its first attack on U.S. military bases, after a weekend that saw U.S. strikes on Iranian nuclear targets.
Rates from Shanghai to the Khor Fakkan, which is situated on the UAE Indian Ocean coastline, are up 76% in comparison to mid-May, according to spot ocean freight rate data tracked by freight intelligence platform Xeneta. The average spot rates have reached $3,341 per forty-foot equivalent unit (FEU.)
The Port of Khor Fakkan is located outside the Strait of Hormuz. Due to its location, the port is considered to be one of the most important transshipment hubs for the Arabian Gulf, the Indian Sub-continent, the Gulf of Oman, and the East African markets.
“Shippers in the region have acted with caution as the level of risk has gradually increased,” said Peter Sand, chief shipping analyst at Xeneta. “Shippers have been frontloading cargo in the most recent months, to bolster the supply chain from adverse disruptions to the flow of containerized goods.”
The Port of Khor Fakkan has had 81 vessels arrive within the past 24 hours, and 51 ships are expected to arrive in the next 30 days, according to VesselFinder.
