Maersk: Iran War is Adding $500 Million in Costs per Month - And Customers Will Have to Shoulder a Portion

"The war in the Middle East has created a new wake-up call with significant disruptions, both to trade flows in and around the Middle East and to our energy supplies," Maersk CEO Vincent Clerc said on CNBC's "Squawk Box Europe" on Thursday. "We are a very energy-intensive industry, and that has created a whole new set of circumstances that we have to deal with, and it will have a material impact on the second and third quarters."

Hormuz Remains Closed - Crude Oil Above $100 a Barrel

Maersk is standing on the front lines of the oil shock, given its deep exposure to fuel costs and global logistics chains - making the conglomerate one of the leading voices warning of what the world will face when coping with widespread energy crises.

The Strait of Hormuz - a maritime chokepoint through which one-fifth of global oil is transported - has effectively remained closed throughout the duration of the Iran war, pushing oil prices up and sustaining them above $100 per barrel. As of Friday, oil was trading at around $105 a barrel - still significantly higher than the pre-war level of $70 - while the market attempts to navigate mixed signals from US-Iran peace talks that could reopen this vital trade route.

Goldman Sachs analysts previously forecasted that if supply chain disruptions persist, oil prices could remain elevated through 2027. After just two months, the first consequences have emerged - notably Spirit Airlines being forced to ground operations due to its inability to cover escalating jet fuel costs.

Maersk: 6 Ships Still Stranded, Costs Surge by $500 Million/Month

Maersk - the world's second-largest container shipping line with 700 vessels and a market share of roughly 14% of global containerized freight - confirmed that the prolonged war is heavily impacting logistics operations. The conglomerate suspended two key operational routes in March - connecting the Far East with the Middle East and the Middle East with Europe. On Thursday, CEO Clerc confirmed that one Maersk commercial vessel successfully transited the Strait of Hormuz under US Navy protection; however, the group still has six ships stranded in the Persian Gulf.

Clerc stated that surging energy costs are saddling the group with an additional $500 million per month. Although Maersk is implementing internal cost-control measures, customers - ranging from small and medium-sized enterprises to multinational corporations - will inevitably have to share a portion of this burden.

"We can do a lot to reduce costs, but there is also a lot we need to do to pass these costs on to customers, because this is simply too massive a cost increase for us to absorb on our own," he said.

Inflation Returns - The Ghost of the Pandemic Era Resurfaces

The energy shock is sparking fears of widespread inflation. US Federal Reserve (Fed) officials, including St. Louis Fed President Alberto Musalem, warned that prolonged energy costs could echo the COVID-19 pandemic scenario - when supply chain disruptions triggered a severe inflation spike. Supply chain pressures accounted for up to 60% of US inflation during the 2021–2022 period. Currently, average US gasoline prices have surpassed $4.50 per gallon - compared to just $3.15 a gallon a year ago, representing a 43% increase.

"Inflation is significantly exceeding our target," Musalem said at an event this week. "We are facing risks on both the employment side and the inflation side. In my assessment, the risks are shifting... toward the inflation side."

Regarding financial results, Maersk reported a 2.6% decline in Q1 revenue to $13 billion, while operating profit plummeted nearly 75% to $340 million. The conglomerate maintained its full-year operating profit guidance, ranging from a $1.5 billion loss to a $1 billion profit.

The Risk of Demand Destruction - The Maersk CEO's Biggest Worry

Clerc expressed concern that prolonged pressure on consumers will heighten the risk of demand destruction - a phenomenon where demand for a product experiences a sustained decline due to supply constraints. A broad-based slowdown could drag down the entire shipping industry's total container volumes.

Last month, a report by the International Energy Agency (IEA) noted early signs of this phenomenon: global oil demand is now forecast to contract by 80,000 barrels per day in 2026 - a complete reversal from the 730,000 barrels per day growth the IEA projected in March.

"As a portion of these costs trickles down to the end consumer, will we see demand destruction at the consumer level, and will that trigger a reverse ripple effect through the supply chain, with weaker demand in the second half of the year?" CEO Clerc questioned. "That is certainly something we are watching very, very closely, because it would undoubtedly change the equation of how this crisis impacts global supply chains and our industry in particular."

Academic Perspective: Is This the Dawn of a New Energy Era?

Although Clerc's concerns regarding demand destruction have been reflected in preliminary data, Ryan Kellogg - an energy and environmental economist and professor of public policy at the University of Chicago - argues it is too early to definitively say the global oil industry will experience actual demand destruction, as this is typically a long-term drag.

Kellogg previously told Fortune that this demand destruction phenomenon could create momentum for the transition from internal combustion engine vehicles to electric vehicle (EV) production - which could cause volatility in other critical minerals, leading to "economic pains" in the medium term.

"An argument can be made that we have entered a new era where oil supply from the Persian Gulf region is no longer as stable and reliable as we once thought, and diversifying away from that supply is a rational move," he said. "There is some capacity for adaptation. But that comes with a cost."

See more:

• International Shipping and Logistics Market Update Week 19/2026 | Phaata
• Hormuz Traffic in Freefall: Iran Tightens Its Grip as the World Waits to See What 'Reopening' Really Means
• Yang Ming Expands Far East - Latin America Service Network Through Agreements with HMM and ONE
• Maersk Q1 2026: Solid Growth Despite Freight Rate Pressures and Geopolitical Instability
• Shipping Lines Adrift in Uncertainty: When Will the Strait of Hormuz Truly Reopen?
• Global Schedule Reliability Hits Year-to-Date High in March 2026
• Two US Destroyers Enter the Persian Gulf, Washington Declares Absolute Control Over the Strait of Hormuz
• Middle East Pressure: Maersk Shifts to Weekly Fuel Surcharge Mechanism in Three European Countries
• Trans-Pacific Trade: The Exodus of Non-Alliance Carriers
• The North European Port Paradox: When Opting for 'Mega-Ports' No Longer Guarantees Schedule Reliability
• International Shipping and Logistics Market Update Week 18/2026 | Phaata
• COSCO schedules: Vietnam - North America in May 2026
• COSCO updates Vietnam-Intra Asia sailing schedules in May 2026
• COSCO updates Vietnam-North Europe sailing schedules in May 2026
• COSCO updates sailing schedules of Vietnam - South America & Africa in May 2026
• COSCO updates sailing schedules of Vietnam-Middle East & Oceania in May 2026
• SITC updates Vietnam-Intra Asia sailing schedules in May 2026

Source: Phaata.com (According to Fortune)

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