Folk Maritime expansion pauses as shipping costs rise
Folk Maritime expansion pauses as shipping costs rise
Folk Maritime has temporarily paused its expansion as geopolitical disruption raises operating costs by as much as 40% and makes additional shipping capacity harder to secure. The Public Investment Fund-owned company had been expanding across the Middle East, Indian subcontinent, Southeast Asia and East Africa, but CEO Poul Hestbaek says that growth has “flattened out” until market conditions normalize.
The problem is less about demand than finding capacity at a price that makes sense. Folk says its vessels are full, but congestion and delays are increasing fuel, insurance and chartering costs. Overall costs have risen around 30-40%, while some individual expenses have more than doubled.
What Folk Maritime does
Folk Maritime currently operates six vessels, five of which it owns, alongside leased ships and capacity bought from partners.
The company had targeted around 250k containers in 2026, or roughly 5k a week. It is currently moving closer to 4k a week and expects to finish below target as congestion and delays stretch journey times.
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Folk Maritime’s operating constraint
A round trip between India and the Red Sea that would normally take around 20 days can now take 30.
Folk has shifted around 75% of its capacity to the Red Sea, compared with roughly half before the conflict. It is testing crossings through the Strait of Hormuz week by week, while it has not crossed Bab Al Mandab “for a while” because of uncertainty over potential Houthi targets.
“We want predictability, and for the time being, we don’t have that.”
Hestbaek says Folk is prioritizing coverage of its additional costs and supply security into the Kingdom rather than aggressive expansion. The company plans to continue its organic growth strategy through the end of the decade and expand partnerships with Saudi logistics providers during 2027.
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