Box ship hit in Gulf as fuel and surcharges spike liner costs

Hapag-Lloyd's Source Blessing was hit by shrapnel while on anchorage in the Persian Gulf today. Image: VesselFinder A containership was struck by a projectile north of Jebel Ali today, as attacks on commercial shipping spread deeper into the Persian Gulf and begin to drive up operating costs across global liner networks. The UK Maritime Trade Operations (UKMTO) agency said the vessel was hit about 35 nautical miles north of the UAE port, causing a small fire. All crew were reported safe and damage assessments were continuing. Shipping sources said the vessel was likely the 2,700 teu Source Blessing, a Hapag-Lloyd chartered ship, sublet to Maersk, and normally deployed on the Oman Gulf Shuttle (OGS) service within the Gemini network. Hapag-Lloyd confirmed that one of its sublet charter ships had been struck by shrapnel but that the crew had extinguished the fire and quickly contained the situation. The feeder service had been suspended six days earlier due to the conflict, leaving the vessel at anchor inside the Gulf. The incident suggests attacks are no longer confined to ships attempting to transit the Strait of Hormuz, but are increasingly affecting vessels operating more widely across the Gulf. In a summary today, UKMTO said it had received 20 reports of incidents affecting vessels operating in the Arabian Gulf, Strait of Hormuz, and Gulf of Oman since 28 February, including 16 attacks and four reports of suspicious activity. The escalating security situation is already feeding into global shipping costs. Bunker prices have surged since the outbreak of hostilities, with very low sulphur fuel oil (VLSFO) reaching about $921 a tonne, up from around $576 before the crisis, according to Ship & Bunker data. Container lines say the disruption is also affecting where vessels are able to refuel. Maersk said supply remained available globally, but had become unevenly distributed, prompting the carrier to reposition bunkers across its network to ensure ships could continue to bunker where needed. A UK forwarder said the surge in bunker prices was already feeding into freight costs across several tradelanes. To cover the impact, Maersk has introduced a temporary Emergency Bunker Surcharge (EBS) across global trades from 25 March. Maersk has also introduced emergency freight charges for cargo moving to and from several Gulf markets, including $1,800 per teuand $3,000 per 40ft, reflecting the need for alternative routing, storage, and additional operational measures. Carriers are also taking sharply different approaches to services in the region. Maersk has suspended most bookings to and from several Gulf countries, including the UAE, Kuwait, Qatar, and Bahrain, while it works to manage cargo already in transit and assess alternative routing options. By contrast, CMA CGM said it was reopening both import and export bookings for Gulf markets, but only through multimodal transport solutions designed to avoid the most dangerous waters. The carrier said shipments would move via bonded landbridge corridors through ports such as Jeddah, Sohar, Fujairah, and Khor Fakkan, before continuing by feeder vessel or truck into markets including Iraq, Kuwait, Qatar, and Bahrain. Other lines are also beginning to pass rising costs on to shippers. MSC has announced emergency fuel surcharges across multiple tradelanes, reflecting the sharp rise in bunker prices and growing operational disruption across Middle Eastern shipping routes. Shippers' groups have criticised the wave of new charges. James Hookham, director of the Global Shippers Forum, said carriers had launched "a flurry of surcharge announcements" in recent days that would significantly increase logistics costs for cargo owners. "In total, the surcharges will have more than doubled the agreed or contracted freight costs for some shipments," he told The Loadstar, warning that the additional charges could put particular pressure on smaller exporters. Meanwhile, port operations in the region are also being affected. Salalah Port temporarily suspended operations following an attack on nearby fuel storage facilities, removing a key container transhipment hub outside the Gulf from liner networks. With attacks continuing and fuel markets volatile, carriers are increasingly restructuring services, cargo flows, and pricing mechanisms as the crisis begins to reshape container shipping across several major tradelanes.

Avianca eyes Caracas, MSC adds a 777F, SF brings in a 747, board shuffle at One Air

Avianca Cargo, MSC Air Cargo and SF Airlines have all expanded operations this week, with developments spanning Latin America, Europe and the UK. Avianca Cargo has launched a weekly freighter service between Bogotá and Caracas, strengthening logistics links between Colombia and Venezuela as trade flows between the two countries continue to recover. The first flight operated on 7 March, using an A330 freighter, offering 60 tonnes of capacity per flight, complemented by an additional seven tonnes of weekly cargo capacity on Avianca passenger aircraft on the same route. Avianca Cargo CEO Diogo Elías said the new freighter operation would strengthen logistics flows between the two markets while providing additional cargo capacity as demand grows. The airline said it planned to gradually increase capacity on the route in line with market demand. The launch also coincides with Avianca opening sales for a second daily passenger frequency between Bogotá and Caracas. Meanwhile, MSC Air Cargo has taken delivery of another 777 freighter, expanding its fleet to seven aircraft as it continues to build its long-haul cargo network. The aircraft, registered I-MSCC and named Castor, was delivered from Boeing's Everett facility in Seattle and will operate under MSC Air's European air operator certificate. According to the carrier, the aircraft will support continued expansion of its Europe-Asia network, with Italian gateways now including Rome Fiumicino and Milan Malpensa, connecting to Hong Kong, Shanghai Pudong and the cargo hub at Ezhou Huahu. Chief executive Jannie Davel said the new aircraft reinforced the carrier's commitment to long-term capacity growth. "Each addition to our fleet is a commitment to our customers, to the tradelanes we serve, and to the long-term foundation we are building," he said. In the UK, SF Airlines has operated its first flight into East Midlands Airport using its own aircraft, marking a step-up in the Chinese carrier's presence at the country's largest dedicated cargo airport. The flight, operated by a 747 freighter, arrived from Ezhou Huahu International Airport, China's cargo-focused hub. Until now, SF Express had served East Midlands largely through charter capacity or space agreements with other operators. Airport officials said the move signalled a longer-term commitment from the carrier and underlined East Midlands' role as a key UK freight hub. East Midlands Airport said cargo volumes grew 12% year on year in 2025, accounting for more than a third of all UK air cargo growth, even as freight aircraft movements fell by 7% due to a shift toward larger long-haul aircraft. Commercial director Adam Andrews said the arrival of SF Airlines' own aircraft represented "a major milestone" in the partnership. One Air reshuffles board as COO and CFO step down UK cargo airline One Air has appointed two new directors following the swift departure of two members of its senior leadership team. Companies House filings show Christopher Hope, the carrier's chief operating officer and accountable manager, stepped down as a director on 4 February. Jonathan Hartley, the airline's CFO, left the board on 25 February. The airline has since appointed Algirds Mikelsons and Marcus Philip Manning as directors. Mr Mikelsons joined One Air as chief operating officer after senior technical and operational roles across the aviation sector, including at Ukraine International Airlines and UTair Airlines, and as chief executive of MRO provider MAUtechnic. Mr Manning brings financial and charter market experience, having previously served as CFO of Chapman Freeborn Airchartering and as a board member of The Air Charter Association. One Air received its UK air operator's certificate in 2023 and operates B747-400 converted freighters.

Alliances differ on post-CNY plans for east-west box trade capacity

As the liner shipping industry awakes after the usual Chinese New Year volume hibernation, there appears to be a clear difference emerging on how different carriers are deploying capacity on the transpacific and Asia-Europe trades. Conflict in the Persian Gulf notwithstanding, the post-CNY demand-supply balance appears to remain on a knife edge, with carriers' capacity management over the past fortnight - on the transpacific trade, for example - held responsible for averting a dramatic collapse in spot rates. "Contrary to historical trends, where carriers slash prices post-holiday to capture first volumes, the market has seen a surprising lack of aggressive price-cutting," said US west coast forwarder Freight Right last week. However, it added: "The next two to three weeks are critical, as the first 'true' post-holiday orders begin to hit the water. Current indicators suggest rates will remain flat through late March. "However, carriers are expected to keep a close eye on these volumes to inform their strategy for the April and May contract negotiations. "If demand remains tepid, shippers should expect carriers to introduce more aggressive capacity management, such as blank sailings, in an effort to artificially tighten the market, and bolster their bargaining power for long-term agreements," it said. Much will therefore depend on how much capacity carriers insert into their networks in the coming weeks and, according to new analysis by Sea Intelligence of the alliances' pro forma schedules to mid-May, there is considerable divergence - especially between Gemini's forward offering and that of the Ocean Alliance. Over the next 10 weeks, the Ocean Alliance will see its Asia-North America west coast weekly capacity increase from 105,000 teu to 128,000 teu; while its Asia-North Europe capacity will rise from 128,000 teu a week to 138,000 teu, showing "how aggressively the Ocean Alliance is moving to capture an anticipated spring market expansion", noted Sea Intelligence. "This recent surge in capacity is not driven by any structural change or upgrade to their underlying services; rather, it is the direct result of a fully deployed baseline network," it added. In contrast, the Gemini partners' transpacific capacity to the North American west coast will rise incrementally, from 44,400 teu a week to 45,000 teu; while its Asia-North Europe capacity will grow from 73,600 teu to 83,500 teu a week. This means Gemini's market share of both trades, measured by capacity, will drop to 13% on the transpacific, from 15% currently, and on Asia-North Europe to 23%, from 27%, simply as a result of competitors' fleet expansion. However, the analyst also warned that the Ocean Alliance's capacity strategy would also likely be accompanied by high weekly variations, as it would likely be forced to blank some sailings during periods of weak demand. "Ocean Alliance's fluctuating deployment pattern indicates a highly elastic network architecture; the alliance is actively scaling its weekly physical supply up and down to absorb the expanding market volume. "While this maximises their market share footprint, it inherently injects significant variance into their week-to-week available capacity," it said, noting that Gemini's strategy is almost the polar opposite. "Gemini Cooperation, by contrast, displays an exceptionally low volatility profile across the observed period - their deployed capacity remains nearly static week over week, regardless of the broader market's expansion. "This rigid deployment pattern points to a highly synchronised, closed-loop network that does not structurally flex to capture sudden market surges," it explained.