Disruption in Strait of Hormuz worsens global supply chain turmoil: ITC

The International Trade Centre has warned that disruptions to shipping through the Strait of Hormuz are affecting global trade, noting a decline in exports of 12 strategic products as economic repercussions extend to energy, transport, insurance, and production costs.

The Centre—which is a joint agency of the World Trade Organization and the United Nations Conference on Trade and Development—said in a report issued today that trade data for April 2026 showed exports of liquefied natural gas fell by 95 percent, while urea fertilizer exports dropped by 83 percent.

The report noted that recent periods of calm in the Middle East conflict had raised hopes for a full resumption of shipping, but maritime traffic remains well below normal levels, with the timing and conditions for a sustained reopening still uncertain.

It highlighted that Japan, which previously sourced 91 percent of its crude oil imports from economies reliant on the Strait of Hormuz, recorded a 64 percent decrease in total imports last April.

The Centre added that the economic impact of the disruption is not limited to cargo shipments, as it also includes higher energy prices, shipping rates, marine fuel costs, and insurance premiums, all of which are driving up production and transportation expenses.

It stated that rerouting vessels to alternative routes is leading to longer delivery times, congestion at ports, and pressure on other transit corridors, ultimately resulting in higher consumer prices.

The Centre warned that rising fertilizer costs could affect agricultural output and food prices, especially in import-dependent and vulnerable economies.

It stressed that the disruption in the Strait of Hormuz has revealed the fragility of global supplies of energy, fertilizers, and industrial inputs, and the extent of their reliance on a single maritime corridor.