War and climate change are fueling a sharp rise in global shipping costs. Recent months have seen dramatic increases at key maritime chokepoints such as the Panama Canal, the Rhine, Black Sea, and Red Sea. The ongoing conflict in the Middle East has effectively shut the Strait of Hormuz, forcing vessels to reroute and increasing expenses.

Simultaneously, prolonged droughts have lowered water levels in critical European rivers. According to pricing agency Argus, oil shipping rates hit $15.22 per barrel on August 10 due to threats against Saudi Arabia-linked tankers. The Black Sea freight rates reached their highest levels since 2005.

Meanwhile, barge transport along the Rhine to cities like Karlsruhe and Cologne has also encountered its peak since 2012. Industry experts warn this represents the largest disruption to the shipping market since the Covid pandemic and Russian sanctions.