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Hapag-Lloyd Flags Middle East Risks Despite Container Demand Strength

Container shipping demand has held up better than anticipated, but geopolitical disruptions and operational headwinds continue to weigh on the industry, according to Hapag-Lloyd leadership. The carrier has suspended transits through the Strait of Hormuz citing crew safety concerns amid regional tensions. Disruption-related expenses are running between $50 million and $60 million weekly. Bunker fuel, insurance and inland transport costs are all climbing sharply. Despite these pressures, the sector's resilience has proven surprisingly durable. Hapag-Lloyd noted freight-rate declines have slowed and demand outperformed earlier expectations. Tariffs in the 15-20% range may redirect cargo flows but are unlikely to halt global trade, executives said. The carrier and partner Maersk have shifted four additional services to Suez routing from longer Cape of Good Hope voyages, normalizing three of four Asia-Mediterranean rotations.