Hapag-Lloyd’s costs jump up to $50 mn weekly due to Gulf conflict

Hapag-Lloyd is currently absorbing an additional $40 to $50 million in costs every week, while six of its vessels are stuck in the Persian Gulf due to the conflict in the Middle East. One of its ships was already hit, causing a fire and structural damage, though the crew remained safe. Around 25,000 shipments of Hapag Lloyd are caught in the disruption, forcing the company to rethink routes and pause sailings through the Strait of Hormuz. In response, Hapag-Lloyd is opening up its container tracking system, typically a paid service, to all customers with shipments in or bound for the Middle East, ensuring full visibility of cargo locations.

The ongoing conflict in the Middle East is taking a direct and costly toll on Hapag-Lloyd, with Chief Executive Officer Rolf Habben Jansen outlining the scale of disruption as he spoke in Mumbai on Thursday (March 19, 2026) as the company announced a ₹20,000 crore investment commitment for India.

“Costs are going up tremendously,” Jansen said, putting a number to the impact. “We today have extra costs of about $40 to $50 million per week. That's very, very significant.”

He made it clear that the financial burden cannot be sustained internally. “That’s also why we have to have conversations with our partners about how to cover those costs, because we cannot absorb $40 to $50 million a week,” he said. “In reality, we will already have to absorb some of that, but we cannot do that for an extended period of time.”

Beyond costs, the operational disruption is equally serious with six Hapag-Lloyd vessels and crew stuck in the Persian Gulf and one ship already hit. The company has been directly impacted by the conflict, with vessels caught in the affected zone. “When we look at the number of ships that are stuck there, we talk about 3,000 more or less altogether,” Jansen said. “Out of that, six are from Hapag-Lloyd, both owned and chartered.”

The risks have already materialised. “Unfortunately, we also had one of our ships hit a couple of days ago, which caused a fire on board and some holes in the hull,” he revealed. “But luckily, the crew are safe, and that remains our first priority.”

Safety, in fact, has driven the company’s immediate response. “First priority, we need to take care of our people on the ground and on the ships,” Jansen said, outlining a series of measures taken to protect employees and crew.

“That means we will, at our cost, move some people back to their home countries to make sure they can be close to their families,” he said. “It also means we take care of our crews and make sure people can work from home so they are not exposed to unnecessary risks while managing shipments.”

On the operational front, Hapag-Lloyd has pulled back from high-risk routes. “Our ships will not go into that trade area for now because it is simply not safe,” Jansen stated, referring to the most affected parts of the region, including areas around the Strait of Hormuz.

At the same time, the company is trying to maintain as much continuity as possible elsewhere. “Everything outside of the Strait of Hormuz, we try to continue as normal,” he said. “Until now, we have been able to do a pretty good job on that, even if it means that sometimes port days need to be shortened, or we need to omit one or the other port.”

The disruption has cascaded across cargo flows. “In total, we today have around 25,000 shipments that are impacted by this situation,” Jansen noted, highlighting the scale of customer impact.

In response, Hapag-Lloyd is leaning on technology to improve visibility. “We have all our boxes equipped with trackers, and we’re the only ones who have done that,” he said. “Normally, that's a service people have to pay for. But as from today (March 19), or at the latest tomorrow (March 20), for all shipments that are on their way or stuck in the Middle East, we will make that information available to all our customers.”

“That means everybody will know where his or her box is,” he added, positioning the move as a collaborative step during a crisis. “That’s an investment from our end, but in times like these, we all need to stick together.”