Global supplies of energy, fertilizers and industrial materials have been under shock due to shipping disruptions in the Strait of Hormuz, the International Trade Centre (ITC) warned on Tuesday.
In its latest Monthly Brief on the Global State of Trade, the agency said restrictions and blockades at the strategic waterway have reduced commercial passage, lengthened delivery times, and driven up transport and insurance costs. The fallout, it noted, is rippling beyond the Gulf region and fueling worldwide concern over supply-chain stability.
Beyond the heavily covered energy sector, the report singled out the fertilizer trade as especially exposed to the threat. Agricultural industries that depend heavily on raw-material supplies and exports from the Middle East are under mounting pressure, which could eventually feed through to agricultural production and food prices, it said.
While the global trading system has so far shown considerable resilience, with businesses adjusting routes and turning to alternative suppliers in an effort to reduce risk, global trade and economic growth will face deepening uncertainty as long as the shipping disruption persists, the ITC cautioned.
Strait of Hormuz blockade impacts global energy, fertilizer supply: International Trade Centre
