Ports face congestion as Middle East tensions strands ships, delay cargo

One of the most affected routes is the Strait of Hormuz.

Rising conflict in Iran and broader Middle East tensions are disrupting global trade, hitting shipping routes, insurance markets, and supply chains, according to a report by Marsh.

One of the most affected routes is the Strait of Hormuz, a critical chokepoint through which roughly 80% of crude oil bound for Asian markets, including China, India, Japan, and South Korea—passes.

Since attacks in the region intensified, thousands of vessels have been forced to reroute or remain idle, with traffic through the strait reportedly dropping by as much as 94%.

The disruption in the Gulf is affecting not only shipping operations but also marine insurance markets and the continuity of global supply chains.

Companies across the maritime ecosystem are recognising that disruption is becoming less an exception and more a permanent feature of the operating environment.

Shipping companies, cargo shippers, and logistics providers are facing significant operational challenges. Supply-chain disruptions are at the forefront, as the Strait of Hormuz carries about a quarter of global oil shipments.

Marine insurance markets are also seeing volatility. War-risk premiums for vessels operating in high-risk areas have surged from roughly 0.2% to over 1% of a ship’s value.

For a cargo vessel valued at $100m, this translates to an added cost of at least $1m per voyage. War-risk policies are issued in seven-day blocks, with insurers issuing cancellation notices within 48 to 72 hours to reassess risk exposure and adjust premiums.

Supply chains are also under pressure. Ports are congested, shipping lines are suspending services, air freight demand is rising, and container offloading from stranded ships is creating imbalances in supply and prices.

The report noted that real-time intelligence, updated insurance coverage, and diversified routing are essential to maintain supply-chain continuity.

This disruption echoes the 2024 Red Sea attacks, which forced ships to bypass the Suez Canal, increasing transit times, fuel costs, and delays.