War Jitters Hit Wine Trade: Europe-to-Asia Shipments Slow, Costs Creep Up

Escalating tensions in the Middle East are disrupting shipping routes between Europe and Asia, lengthening transit times for wine shipments and pushing up freight costs, according to logistics providers and industry participants.

Some shipping lines that had begun returning to the Red Sea route have diverted vessels again around the longer and more expensive Cape of Good Hope route, extending delivery times for European wines to China from about 30 days to roughly 45 days, Jiuge, a Chinese wine supply chain company, said in a recent notice.

In addition, if the Strait of Hormuz were to be blocked, war risk insurance premiums on certain routes could rise several-fold, with industry estimates suggesting increases of between 300% and 500%.

Freight forwarders confirmed the disruption. Speaking to Vino Joy News, a representative from Hillebrand, a DHL-owned logistics company specialising in wine and spirits transport, said the situation reflects broader instability affecting global shipping routes.

Around 20% of the world’s crude oil passes through the Strait of Hormuz, and heightened tensions there have led carriers to impose emergency fuel surcharges and war risk-related fees, increasing costs for importers, the company said.

Since the US-Israel war with Iran began in early March, oil prices have soared close to US$120 a barrel before easing slightly above US$100. 

Although wine shipments do not pass through the strait, the impact has spread to the Red Sea corridor, a key route for Asia–Europe trade. Since late 2023, attacks on commercial vessels in the region have already forced many ships to reroute around southern Africa. Attempts by some major carriers to resume Red Sea transits earlier this year have now been reversed as security concerns persist.

“Some shipping companies tried to return to the Red Sea earlier this year, but have since had to adjust again,” the Hillebrand representative said. “At the same time, congestion at some European ports remains unresolved, adding further delays.”

Transit times from Europe to Asia have increased by one to three weeks, and delivery schedules have become less predictable, the company said. Additional surcharges vary by carrier but are typically about US$300 to US$400 per 40-foot container, with higher costs for refrigerated shipments.

Carson Chu, team leader sales at Dachser International Freight Forwarding (Shanghai), said the impact on Asia’s wine import market remains limited for now.

“From what I observe, exports from China to Europe have increased more noticeably, while imports have not changed significantly,” Chu said. “Shipping rates from Europe to Asia are still relatively low. Even if they rise, the increase may be around US$100 to US$200 per container.”

Chu added that only a small number of major carriers had resumed Red Sea routes, while many smaller operators have continued routing via the Cape of Good Hope, limiting the overall disruption to wine imports.