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Iran war disrupts US small businesses with shipping complications and higher costs

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Iran war disrupts US small businesses with shipping complications and higher costs
News

News

Iran war disrupts US small businesses with shipping complications and higher costs

2026-04-02 17:01 Last Updated At:17:10

NEW YORK (AP) — The Iran war is making life more difficult for small business owners across the country, who are grappling with shipping complications, higher costs and consumers tightening their grip on their wallets.

A shoe designer is struggling to import its shoes from Vietnam; a pistachio grower has millions of dollars worth of pistachio exports sitting in the water; a home landscaper in Kansas City is stockpiling fertilizer as prices skyrocket; and a Chicago electronics store owner is facing pain at the pump.

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Top Class Lawn Care owner Jake Wilson dumps fertilizer into a hopper before applying it to a lawn Thursday, March 26, 2026, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson dumps fertilizer into a hopper before applying it to a lawn Thursday, March 26, 2026, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson stands by fertilizer he stockpiled at his supplier's warehouse in anticipation of Iran war related price hikes Thursday, March 26, 2026, in Riverside, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson stands by fertilizer he stockpiled at his supplier's warehouse in anticipation of Iran war related price hikes Thursday, March 26, 2026, in Riverside, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson stands by fertilizer he stockpiled at his supplier's warehouse in anticipation of Iran war related price hikes Thursday, March 26, 2026, in Riverside, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson stands by fertilizer he stockpiled at his supplier's warehouse in anticipation of Iran war related price hikes Thursday, March 26, 2026, in Riverside, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson stands by fertilizer he stockpiled at his supplier's warehouse in anticipation of Iran war related price hikes Thursday, March 26, 2026, in Riverside, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson stands by fertilizer he stockpiled at his supplier's warehouse in anticipation of Iran war related price hikes Thursday, March 26, 2026, in Riverside, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson fertilizes a lawn Thursday, March 26, 2026, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson fertilizes a lawn Thursday, March 26, 2026, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Small business owners say the severe supply chain disruptions during the pandemic were worse — but they fear that if the war stretches on for months, it might start to come close.

“The costs are rising, the routes are changing, and capacity is tightening. It’s all happening at the same time, and that’s a perfect storm for small businesses," said Brandon Fried, executive director of the Airforwarders Association, a trade group for U.S companies that move cargo through the supply chain on all modes of transport.

The U.S. is the largest exporter of pistachios, followed by Iran, according to the U.S. Department of Agriculture.

At Nichols Farms, in Hanford, California, a fourth-generation owned pistachio grower and processor, chief operating officer Jared Lorraine said exports make up about 50% of business. They ship to Europe, China and increasingly, the Middle East.

The effective closure of the Strait of Hormuz has made it impossible to deliver pistachios to several clients. When the war started, he estimates about $5 million worth of pistachios left stranded in the water, unable to be delivered to customers in Saudi Arabia, Iran and the United Arab Emirates.

“While much of the public attention has been focused on oil, which is significant, really, the destruction of the food system is I think equally as serious,” he said, adding 70% to 80% of food in the Middle East is imported.

When the U.S. bombed Iran on Feb. 28, Nichols Farms had about $5 million pistachios on ships that got stranded, Lorraine said. They managed to reroute some of the pistachios: one batch was offloaded in Jeddah, in Saudi Arabia, to be trucked to the UAE. Another two loads were able to make it into a port in Oman after being reloaded into a smaller container in India that could make it into that port. But $3.5 million still sits on the water.

"A lot of it has just been in limbo," Lorraine said. "It’s literally been sitting idle for the last three weeks and we’re just saying, OK, what do we do?”

Matthew Tran is the founder of Birchbury, a footwear brand based in Los Angeles that makes minimalist — also known as “barefoot” -- shoes. The company makes the shoes in Vietnam and ships to customers across the U.S., U.K., Australia and Canada.

Typically, Tran pays about $3,500 per container shipped out of Vietnam. But that's doubled since the war started to about $7,000 as shippers deal with rerouting and higher insurance costs. The lead time for shipping has increased by three to four weeks, too.

“It’s kind of like a traffic jam,” he said about the shipping time. “So even though it doesn’t seem like it would directly affect me because I’m going from Vietnam to America, it does affect me when there’s more congestion.”

He said supply chain disruption was worse during COVID, when everything came to a standstill. But he's worried about how long the war will last.

"They always say the wars are going to be short, but they’re never short," he said. He worries about customers having less money for discretionary spending since gas prices have surged.

“Customers don’t understand, but also their gas prices just went up, too, right?,” he said. “People just don’t want to spend money at the end of the day because they’re like, ‘Oh man, gas is up a lot.’ Buying another new pair of shoes is secondary to being able to go places with your car.”

Across the country, Jake Wilson owns Top Class Lawn Care in Kansas City, Missouri, taking care of nearly 400 lawns across the city. The closure of the Strait of Hormuz has upended the fertilizer business, since the Middle East supplies close to 30% of global exports of major fertilizers, according to the International Fertilizer Association.

Wilson started his business in 2011 and he's built strong relationships with his suppliers. A day or two after the Iran war started, two suppliers emailed him and told him to expect a spike in prices soon and suggested he make orders ahead of price increases.

Rising prices are a concern since about 70% of his customers lock in a price for a year of lawn care and prepay at the beginning of the year.

The last thing he wants to do, he said, is go back to customers in the middle of the year and say the price of fertilizer increased so he has to ask for more money.

“It’s kind of on me to try to get out ahead of it, the best I can, so I could still try to be profitable while keeping prices where I quoted at the beginning of the year,” he said.

He usually buys fertilizer four times a year, two or three months ahead of the time when he plans to use it, but he's currently trying to secure fertilizer all the way through the fall season and into the end of the year, effectively doubling his normal order.

“I don’t want to wait till summer and go to my supplier and they either say, well, we don’t have any product available or what we do have is now 60%, 70% more expensive than what it was quoted in early spring, or first of the year,” he said.

Higher gas prices have an electronics store executive considering ending free shipping.

Abt Electronics in Chicago uses on average 25,000 gallons of diesel fuel and 30,000 gallons of gas fuel each month to run more than 650 delivery vans and trucks, according to Jon Abt, co-president of the retailer.

So with gas prices surging, Abt said he’s concerned. Free shipping and free delivery with a minimum order of $35 is a perk that he wants to keep.

“It’s an eye-opening expense, ” Abt said. “It will affect the cost of making deliveries. This will also hit the shipping companies we use for out-of-state deliveries,”

Abt said he hasn’t received the fuel bill for March yet, but for now, he will absorb the cost and see how the market plays out and what competitors do.

He added, “We like delivering things for free, and I think customers expect it."

AP Business Writer Anne D'Innocenzio in New York contributed to this report

Top Class Lawn Care owner Jake Wilson dumps fertilizer into a hopper before applying it to a lawn Thursday, March 26, 2026, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson dumps fertilizer into a hopper before applying it to a lawn Thursday, March 26, 2026, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson stands by fertilizer he stockpiled at his supplier's warehouse in anticipation of Iran war related price hikes Thursday, March 26, 2026, in Riverside, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson stands by fertilizer he stockpiled at his supplier's warehouse in anticipation of Iran war related price hikes Thursday, March 26, 2026, in Riverside, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson stands by fertilizer he stockpiled at his supplier's warehouse in anticipation of Iran war related price hikes Thursday, March 26, 2026, in Riverside, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson stands by fertilizer he stockpiled at his supplier's warehouse in anticipation of Iran war related price hikes Thursday, March 26, 2026, in Riverside, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson stands by fertilizer he stockpiled at his supplier's warehouse in anticipation of Iran war related price hikes Thursday, March 26, 2026, in Riverside, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson stands by fertilizer he stockpiled at his supplier's warehouse in anticipation of Iran war related price hikes Thursday, March 26, 2026, in Riverside, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson fertilizes a lawn Thursday, March 26, 2026, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Top Class Lawn Care owner Jake Wilson fertilizes a lawn Thursday, March 26, 2026, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Mohamed Salah's long goodbye to Liverpool begins on Saturday in the quarterfinals of the FA Cup, the competition which represents his best chance of a trophy in his final year at Anfield.

The Egypt winger announced last week that he will be leaving Liverpool at the end of the season after nine years at a club where he has broken scoring records and established himself as one of the world's best players.

Salah potentially has 15 games left in the famous red shirt: Seven in the Premier League as well as three in the FA Cup and five in the Champions League, should Liverpool reach the final in both of those competitions.

That won't be easy.

In the Champions League, defending champion Paris Saint-Germain is up next in the two-leg quarterfinals and it's pretty much as tough in the FA Cup, with Liverpool handed an away match at Manchester City.

Salah, who has 255 goals in 435 appearances for Liverpool, missed the Reds' last game before the international break — a 2-1 loss at Brighton in the league — with a muscle injury but has told manager Arne Slot he should be healthy enough to return this weekend.

“He just does so much for his body for such a long time that he recovers so fast," Slot said on Wednesday. "So, he will train with the team again tomorrow and if everything works well then he’s available to be with us at City.”

The 33-year-old Salah was left out of the Liverpool team for four straight games at the end of 2025 in what appeared to be a breakdown in his relationship with Slot and the club.

Since returning from the Africa Cup of Nations, Salah virtually has been an ever-present in the lineup, seemingly winning the Dutch coach round.

“That hunger never drops,” Slot said of Salah. "It's the thing I find most special about him. So many good players around the world — he's definitely one of them in the last 10 years — and to show that hunger every three days, that professionalism, that commitment to the club and to the team, wanting to score again, always wanting to play ...

“When you take him out three minutes before the end, he's like, ‘Ah, maybe I could have scored one extra.’”

City, meanwhile, is seeking a domestic cup double after beating Arsenal in the English League Cup final on March 22. Pep Guardiola's team is also chasing Arsenal in the Premier League, which takes a break this weekend to give the FA Cup its own space in the calendar.

The other FA Cup quarterfinals take place across Saturday and Sunday.

After City-Liverpool in the early kickoff on Saturday, Chelsea hosts third-tier Port Vale — the lowest-ranked team left in the competition — before Arsenal visits second-tier Southampton.

On Sunday, West Ham hosts Leeds in an all-Premier League matchup.

Manchester City midfielder Phil Foden has less than two months to persuade England coach Thomas Thomas he is worthy of a place in the World Cup squad.

Foden started both of England’s recent friendly games — a draw with Uruguay and a loss to Japan — but failed to impress either in the No. 10 role or as a “false nine," prompting Tuchel to say it's “ not a guarantee ” that Foden will be at the World Cup.

Foden was English soccer's player of the year in the 2023-24 season but has not maintained his top form and has rarely started for City in recent months.

Arsenal's team sheet for the Southampton game will be heavily scrutinized, given 10 players missed games for their national team over the international break because of various issues.

Eberechi Eze, Jurrien Timber and Martin Odegaard already had injuries that caused them to miss the League Cup final, before Piero Hincapie, Bukayo Saka, Declan Rice, William Saliba, Gabriel Magalhaes and Leandro Trossard all pulled out of international duty.

England's Noni Madueke and Spain's Martin Zubimendi missed the second games for their respective countries after reporting injuries.

There might be growing disharmony at Chelsea, going off recent comments by two of the team's best players.

Enzo Fernandez said after elimination in the Champions League that he couldn't guarantee being at Chelsea next season, while Marc Cucurella told The Athletic during this international break that the team was “more stable” under coach Enzo Maresca, who was fired in January, and, "If you asked me, I would not have made this decision.”

Liam Rosenior, the current Chelsea coach, is under big pressure after four straight defeats.

AP soccer: https://apnews.com/hub/soccer

England's Phil Foden holds the ball during the international friendly soccer match between England and Uruguay in London, Friday, March 27, 2026. (AP Photo/Alastair Grant)

England's Phil Foden holds the ball during the international friendly soccer match between England and Uruguay in London, Friday, March 27, 2026. (AP Photo/Alastair Grant)

FILE - Liverpool's manager Arne Slot talks to Mohamed Salah during the Premier League soccer match between Liverpool and Tottenham in Liverpool, England, Sunday, March 15, 2026. (AP Photo/Jon Super, File)

FILE - Liverpool's manager Arne Slot talks to Mohamed Salah during the Premier League soccer match between Liverpool and Tottenham in Liverpool, England, Sunday, March 15, 2026. (AP Photo/Jon Super, File)

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