The Current How war in the Middle East is upending the global economy
Mar 23, 2026
Denise Ho, a shipping industry pro with 25+ years, and Peter S. Goodman, NYT trade reporter and author, discuss how the Middle East war is snarling global logistics. They describe stuck ships, soaring surcharges, and threats to energy, fertilizer and perishable supplies. They compare these shocks to pandemic-era bottlenecks and examine policy reactions and wider economic risks.
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Shipping Clients Hit With Sudden War Surcharges
- Denise Ho's clients are facing sudden surcharges and rerouted cargo that break contracts and budgets.
- War risk and emergency fuel surcharges jumped costs per 40-foot container to about $3,000 or more with little notice.
Carrier Alliances Create Crisis Pricing Power
- Three carrier alliances control over 90% of major container routes, giving them pricing power during crises.
- That oligopoly lets carriers raise rates far above additional operating costs, turning disruptions into windfalls.
Textile Exporter Faced Fivefold Freight Hike
- Textile exporter Amar Zaidi saw costs to ship fabric from Istanbul to Shanghai jump from $2,000 to $10,000.
- Peter S. Goodman used this real example to show carriers can multiply freight charges fivefold amid route anxiety.
