Iran‑Israel tensions along Strait of Hormuz raise oil, shipping rates—Indian shipping stocks see early gains on June 23.
Rising tensions between Iran and Israel, centered on the Strait of Hormuz, are driving up global shipping freight rates and prompting close monitoring of fuel cost impacts on the logistics sector.
Shipping stocks such as Shipping Corporation of India rose nearly 4%, while Great Eastern Shipping gained about 2%. Logistics firms CCI and Allcargo Gati saw flat to modest gains in early trade on 23 June. Investors are weighing possible freight‑rate spikes—already reflected in supertanker rates doubling to approximately $60,000 per day—as high risks lead vessels like Coswisdom Lake and South Loyalty to make abrupt U-turns near the strait.
Meanwhile, the Baltic Dry Index dropped 3.5% to 1,689 on Friday, its lowest since 10 June, indicating cooling demand for dry bulk despite the geopolitical turmoil. Container spot rates between Shanghai and Jebel Ali surged 55% within a month, highlighting supply‑chain strain.
Analysts caution that rate increases may be short‑lived unless Iran moves to close the strait. Ongoing developments in oil and risk insurance markets will continue to shape freight and logistics outcomes in India.
Source: Money Control
