Organized Money Up Ship's Creek: The Crisis At The Strait
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Apr 6, 2026 Salvatore Mercogliano, former merchant mariner and maritime history professor who runs the YouTube channel What’s Going On With Shipping?, breaks down the crisis at the Strait of Hormuz. He explains the dramatic drop in transits, which commodities are most at risk, how fuel and insurance spikes ripple through supply chains, and why untangling global shipping will take weeks to months.
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Bunker Fuel Surge Raises Shipping Costs
- Bunker fuel prices have surged massively, raising shipping costs across routes with fuel surcharges.
- Higher bunker costs create $200–$500 surcharges per container and inflate movement costs even on unrelated Europe–US routes.
Fear And Insurance Shut Shipping Down
- Fear of attack, not only direct hits, halted shipping: carriers paused until war-risk insurance and security assurance were in place.
- Lack of credible security and U.S. naval presence kept commercial lines from resuming safe transits.
Iran's Toll Booth Strategy In The Strait
- Iran effectively demands ships sail in its territorial lane near Larak and Kish and pay a fee, reportedly around $2 million per vessel.
- Some Chinese and other ships that attempted departure were turned around until arrangements or payments were made.