Global Shipping Traffic Through Strait of Hormuz Collapses by 90 Percent Amid Escalating Middle East Conflict

Global trade routes shift as Strait of Hormuz traffic falls 90%. Learn why Maersk and Hapag-Lloyd are rerouting ships around the Cape of Good Hope.

By: AXL Media

Published: Mar 5, 2026, 5:42 PM EST

Source: The information in this article was sourced from Qatar Tribune

Strategic Waterway Paralysis Triggers Global Rerouting

The Strait of Hormuz, a critical artery for global energy and maritime commerce, has seen a near total cessation of activity following the escalation of hostilities in the Persian Gulf. Real-time tracking data from Windward confirms that only four vessels transited the corridor on March 3, a staggering 90 percent decline from the historical average of 138 ships per day. This collapse occurred immediately after the United Kingdom Maritime Trade Operations raised regional security risks to a critical level, an action that prompted global insurers to terminate war coverage policies for any vessels attempting to navigate the basin. The resulting vacuum has forced a fundamental reconfiguration of international trade routes as the primary maritime gateway for Middle Eastern oil becomes effectively inaccessible.

Massive Diversion to the Cape of Good Hope

In response to the blockade and the subsequent threat from Iranian-backed forces, the world’s largest shipping conglomerates have abandoned the Suez Canal and Gulf routes in favor of the southern tip of Africa. Companies such as Maersk, CMA CGM, and Hapag-Lloyd have officially suspended all transits through the region, redirecting vessels around the Cape of Good Hope. This detour adds between 10 and 20 days to standard delivery schedules, placing immense strain on global supply chains and inflating operational costs. According to Hapag-Lloyd, the decision to avoid the Red Sea and Gulf regions is a necessary protective measure against persistent threats, even as the extended voyages disrupt the precision of just in time manufacturing and retail inventories worldwide.

Energy Export Collapse and Storage Crisis

The impact on the global energy market is particularly acute, with oil tanker traffic mirroring the 90 percent drop observed in container shipping. Iraq has been forced to halt production at its Rumaila complex in Basra because storage facilities have reached maximum capacity, with zero crude oil being handled at Basra Port as of early March. JPMorgan analysts suggest that if this disruption extends beyond 21 days, major regional producers will have no choice but to implement widespread facility shutdowns. Saudi Arabia and the United Arab Emirates, which together export over 7 million barrels of crude and refined products through the strait daily, are n...