Highlights:
- Air freight costs spiked 400% in just 48 hours, with nearly 170 container ships trapped and 18% of air cargo disrupted
- Fertilizer urea prices have already surged from $475 to $680 per metric ton, with roughly one-third of global fertilizer trade transiting the Strait of Hormuz
- Air cargo capacity dropped an estimated 18% as airlines suspended flights to and from major Gulf hubs
The Iran conflict is delivering a blow to global supply chains far beyond oil. Cargo ships are stuck in the Gulf or rerouted around southern Africa, while planes carrying goods out of the Middle East remain grounded.
Petrochemical feedstocks used in plastic and rubber production, nitrogen fertilizers, and critical tech components are all under strain — experts warn that disruptions can hit consumer prices within 2–5 weeks.
Each rerouted voyage costs upwards of $1 million in additional fuel alone — costs that will be passed directly to consumers.
Global supply chain disruptions already cost businesses an estimated $184 billion annually — and this conflict threatens to push that figure sharply higher.
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