News / Trump threatens Hormuz blockade as FMC eyes probe into carrier surcharges

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As Donald Trump threatens to blockade the Strait of Hormuz amid his perception of Iranian intransigence surrounding lifting of its own blockade, the US Federal Maritime Commission (FMC) has raised the spectre of a probe into Hormuz-related carrier surcharges.

On Saturday, the FMC told shippers it was “closely monitoring” how the conflict in the Persian Gulf was affecting both shipping conditions and carrier charging practices.

While the bulk of the agency statement concerned how box lines could introduce surcharges, it ended by noting that the FMC may on “its own motion, investigate potential Shipping Act violations” – breaches potentially resulting in fines and damages.

It also urged shippers to reach out to the FMC if they were concerned a carrier is acting in a manner that does not comply with the Shipping Act’s regulations on surcharging.

The statement was welcomed by shippers and forwarders who have expressed increasing frustration at the way carriers have been implementing their so-called “war-risk surcharges”.

Describing the situation as like the “Wild West”, forwarders told The Loadstar carriers had been acting “with wild abandon”, pointing out that the surcharges did not offer the cargo any additional protection, suggesting carriers were “testing the water for what they can get away with”.

CMA CGM, Hapag-Lloyd, Maersk, MSC, and ONE all implemented war-risk surcharges, some opting for a different name, within a few days of each another at the start of March for shipments destined the Gulf and Middle East. The cost, dependent on size and box type, ranging from $1,200 (ONE) to $2,000 (CMA CGM) per teu, and above $3,000 per 40ft, while CMA CGM announced reefers would face a $4,000 fee.

Infuriated forwarders said: “When surcharges exceed base freight rates, the question is no longer about cost recovery. It becomes a question of proportionality and whether pricing is reflective of risk or of market leverage.

“In disrupted markets with constrained capacity, pricing behaviour tends to reflect market power rather than underlying cost movements. The current surcharge environment is consistent with that pattern,” they added as they called  for regulatory intervention.

By focusing on shippers, Saturday’s announcement is also likely to further raise the standing of the FMC and its recently appointed new chair, Laura DiBella, following the recent $22m fine on MSC for Covid-era detention and demurrage practices.

With her appointment having been cautiously received Ms DiBella’s tenure has so far been premised on upholding the statutory directives of the Shipping Act – although some had feared she may be too close to the White House.

That administration has moved to further inflame the situation in the Persian Gulf, with its purported looming imposition of a naval blockade against vessels trying to cross the Strait of Hormuz either coming from or heading to Iran.

Quite how such a blockade would be enacted remains to be seen, but Iran has made no effort to disguise the fact that it would certainly target US warships within its reach. And Chief executive of Vespucci Maritime Lars Jensen said: “Another element worth noting is that, if actually implemented, this would lead to the US Navy interdicting vessels from, for example, China or India, creating a new geopolitical escalation of the conflict.”

Mr Jensen pointed out that, according to AIS data, “roughly a dozen tankers and bulkers” had transited the strait since President Trump issued his plans to blockade it.

He added: “Several of the vessels currently transiting have Chinese ownership and Chinese crew,” while reiterating that despite Tehran’s claims to the contrary, the waterway was still not open for civilian traffic.

In its statement confirming the blockade would commence at 10am Eastern Time today, US Central Command (Centcom) said it would not impede vessels headed to non-Iranian ports.

Without going into any practical detail on how the blockade would be enforced, it said it would be impartial and “against vessels of all nations entering or departing Iranian ports and coastal areas”.

For its part, Iran has said approaching military vessels would be considered as violating the ceasefire, presumably rendering them targets for attack and further destabilising regional supply chains and shipping flows.