Shipping Cost Shock: China–Iran Container Freight Rates Surge to $13,000

Rising security risks along maritime routes have created a significant shock for Iran’s foreign trade, driving up freight and marine insurance costs while restricting access to traditional shipping routes.

 

Many vessels are currently reluctant to call at Iranian ports due to the elevated risks, making the movement of goods increasingly difficult.

One of the most significant consequences has been the sharp increase in container freight rates from China to Iran. The cost of shipping a container, previously around $3,500, has now risen to approximately $12,000–$13,000. At the same time, vessel insurance costs have increased by around two to three times following heightened security risks in the Persian Gulf.

Alternative routes are also proving costly. Some cargo can be transported through rail and transit corridors, but freight costs on certain alternative routes are estimated at around $4,000, while the cost via Turkey can reach approximately $14,000. As a result, disruptions to maritime routes are also pushing up the cost of alternative transport options.

Another major challenge is the loss of Jebel Ali Port as a key route for Iran’s container trade. A significant share of Iran-bound containers previously moved through Jebel Ali before entering the country, but this route is currently effectively closed to Iranian trade. The restriction, combined with higher freight and insurance costs, is placing additional pressure on Iran’s foreign trade.

The impact extends far beyond containerized consumer goods. Wheat, barley, corn, steel and a wide range of raw materials and consumer products rely on maritime transport to reach Iran. Continued disruption to vessel traffic could therefore increase import costs, raise the final price of goods and place further pressure on Iran’s broader supply chain.