US-Iran War Costs Shipping Firm $500M Monthly
Maersk is the world's second-largest container shipping company. Its boss Vincent Clerc says the US-Iran war has raised costs by $500 million per month.
Maersk's fuel bill has nearly doubled since the war began. Those higher costs have been passed on to customers.
Clerc said reopening the Strait of Hormuz would have little impact on cargo flows. Maersk took a careful approach during the conflict to protect staff and vessels.
Reports say Maersk suspended two key shipping routes linking the Middle East to Asia and Europe. Clerc also warned the impact could get worse in coming months. He said higher costs reaching everyday shoppers could reduce how much people buy.
Klear Note — The Strait of Hormuz is a narrow waterway between Iran and Oman. About one-third of world's sea trade passes through it. War disrupts shipping routes and forces companies to take longer, costlier paths.
Key Terms 3
- Maersk Danish company and world's second-largest container shipping firm
- Strait of Hormuz Narrow sea passage in the Middle East vital for oil shipping
- cargo flows The movement of goods transported by ships