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Iran conflict sends apparel freight rates soaring on US & EU routes

03 Mar '26
3 min read
 Iran conflict sends apparel freight rates soaring on US & EU routes
Pic: Shutterstock

Insights

  • Maritime risk in the Middle East has nudged freight higher, with EU-bound lanes under greater pressure than US routes due to longer sailings and capacity absorption.
  • Base rates remain moderate, but war-risk, bunker and equipment surcharges are lifting real payable costs for apparel exporters.
  • The core risk is gradual cost creep and schedule instability, which compress already thin garment margins.

The global apparel industry, built on razor-thin margins and precisely timed shipping calendars, is navigating a fresh wave of freight uncertainty following geopolitical tensions in the Middle East that escalated on February **.

While container rates have not exploded across the board, the market has shifted just enough to unsettle sourcing strategies for exporters shipping to the United States and Europe. For apparel where a two-cent swing per garment can reshape margins, even moderate freight increases matter.

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