The war in Iran has caused colossal changes in global shipping in just over three weeks.
The lengthening of routes in order to avoid the war zone leads to an artificial shortage of ships, while rerouting causes congestion in ports and transshipment hubs.
This, combined with skyrocketing oil rates and the collapse of insurance coverage in the Gulf, is sending costs soaring.
VLCC tanker rates have increased by 94%, and bulk carriers by 13%. Ships that do take the risk of crossing the Gulf are securing rates that reach the unthinkable level of $740,000 per day.
Meanwhile, thousands of seafarers remain stranded without repatriation chances, causing labor frictions.
