The Strait of Hormuz Crisis: How It’s Affecting Global Logistics

The Strait of Hormuz has become the single most important pressure point in global logistics during 2026. As tensions between the United States and Iran have escalated, this narrow stretch of water has gone from a strategic shipping lane to a full-blown freight bottleneck.

And because so much of the world’s oil, gas, and Gulf cargo passes through it, disruption here doesn’t stay regional. Tt sends shockwaves through ocean freight, air freight, haulage, and global supply chains. Reuters vessel tracking shows daily transits have collapsed from roughly 125–140 vessels per day before the war to only around 6–7 vessels on some recent days, meaning the route is functioning at a fraction of normal capacity.

What Is the Strait of Hormuz — and Why Does It Matter So Much?

The Strait of Hormuz is a narrow shipping corridor located between Iran and Oman, connecting the Persian Gulf to the Arabian Sea.

This route is one of the most commercially vital waterways on the planet because:

• Around 20% of the world’s oil supply passes through it
• Huge volumes of liquefied natural gas (LNG) transit here
• It serves major export hubs in Saudi Arabia, UAE, Kuwait, Iraq, Qatar and Bahrain

When Hormuz slows down, the global economy feels it almost immediately. Since late February, tanker owners, oil majors and trading houses have suspended or sharply reduced transits, while maritime insurers have withdrawn normal war-risk coverage in the Gulf.

Vessel Traffic Has Virtually Collapsed

This isn’t just “higher caution.” Commercial shipping behavior has changed dramatically.

• Major carriers have paused Gulf bookings
• Tankers are anchored waiting for security clarity
• Some dry bulk movement continues, but only at minimal levels
• Full container services into the region remain heavily disrupted

Hapag-Lloyd was one of the first major global carriers to suspend all vessel transit through the Strait indefinitely, and other operators have followed with partial or full restrictions.

According to Ocean Network Express, roughly 10% of the global container fleet became caught up in Hormuz-related backups when the crisis began—an enormous amount of capacity effectively frozen.

So while the strait isn’t “officially closed” in the technical sense, commercially it may as well have a giant “absolutely not, mate” sign hanging over it.

Oil Prices Are Rising — Which Means Freight Costs Are Rising

Because Hormuz carries such a massive share of global oil and LNG, any disruption creates instant panic in energy markets.

The consequences:

• Brent crude surged sharply after the restrictions began
• Fuel traders suspended Gulf liftings
• LNG schedules were delayed
• War-risk premiums climbed

That pushes up:

Ocean Freight Costs

Shipping lines are increasing:

• BAF (Bunker Adjustment Factors)
• Emergency risk surcharges
• Gulf congestion fees

Air Freight Costs

Airlines are hit through:

• Higher aviation fuel prices
• Longer rerouting due to Middle East airspace concerns
• Reduced uplift capacity from Gulf hubs

Road Haulage Costs

Domestic haulers are absorbing:

• Diesel hikes
• Increased subcontractor rates
• Higher final-mile delivery pricing

This ties directly into the fuel pressures discussed in The Impact of Fuel Prices on Freight Shipping Costs.

Port Congestion Is Now Spreading Globally

When ships stop flowing through a key artery, the knock-on effect is ugly:

• Containers get stuck in transshipment ports
• Equipment becomes mispositioned
• Alternate ports become overloaded
• Sailing schedules become unreliable

Cargo that would normally flow smoothly through Gulf-connected routes is now bunching up in:

• Singapore
• Jebel Ali
• Mediterranean feeder hubs
• East African alternatives

This creates the same domino effect we saw during COVID—just with more missiles and fewer people baking sourdough.

For more on this, see Mitigating Port Congestion.

Insurance Has Become a Major Barrier to Movement

One of the least talked-about but most important issues:

If vessels can’t get insured, they often simply don’t sail.

War-risk underwriters have:

• Raised premiums drastically
• Cancelled cover on some Gulf transits
• Added route-specific exclusions

This means even willing shipowners are often commercially blocked from moving freight.

Reuters reported this insurance withdrawal as one of the main reasons commercial traffic remains at a trickle despite political claims that the route is “open.”

Which Industries Are Being Hit Hardest?

Manufacturing

Raw material imports from Gulf suppliers delayed.

Retail

Longer replenishment times and volatile landed costs.

Energy

LNG and fuel supply uncertainty.

Food & Pharma

Temperature-sensitive goods face spoilage risk from prolonged dwell times.

Construction

Steel, chemicals, machinery and industrial components are arriving later and costing more.

In the UK, manufacturers are already reporting the highest delivery delays and input cost increases since 2022 due partly to Hormuz disruption and associated energy spikes.

What Businesses Should Be Doing Right Now

1) Audit Supplier and Route Exposure

Know exactly which products rely on Gulf lanes or oil-sensitive transport.

2) Secure Capacity Before Peak Panic Hits

When everyone waits, everyone pays more.

3) Diversify Modes

Use sea-air, dedicated air, rail or alternative ports where possible.

Useful comparison: Sea Freight vs Air Freight

4) Build Buffer Stock

Just-in-time is brilliant until geopolitics decides to cosplay as the apocalypse.

5) Tighten Documentation

When capacity is scarce, customs delays become even more expensive.
See Trade Compliance.

How K&L Freight Helps Businesses Navigate Hormuz Disruption

With over 35 years of freight forwarding experience, K&L Freight helps businesses reduce exposure to high-risk shipping events through:

• Alternative routing strategies
• Multi-modal freight planning
• Capacity sourcing during disrupted markets
• Real-time control tower monitoring
• Customs and compliance-first shipment management

Explore Freight Forwarding or learn more About K&L.