War disrupts Hormuz and Suez, costs soar

War-driven instability is once again exposing the fragility of global trade. From the Strait of Hormuz to the Suez Canal, two of the world’s most critical maritime arteries are under strain, with consequences already spreading far beyond the immediate conflict zone.

For port operators and manufacturers, the impact is becoming tangible. Insurance costs are rising, routes are shifting, and supply chains are adjusting in real time. 

The result is a steady increase in the cost of moving both goods and energy.

Annagiulia Randi, president of the Ravenna association of international freight forwarders and Business Development Manager at Setramar Group, describes a system under pressure but still functioning. 

The closure of the Strait of Hormuz does not directly halt traffic through the port of Ravenna, yet its global effects are immediate.

A shock that travels

Disruptions in Hormuz are reverberating across energy markets and shipping networks. As one of the world’s main oil transit routes becomes unstable, uncertainty alone is enough to drive up costs.

The most immediate effect has been on insurance. War risk coverage has become scarce, with several insurers withdrawing altogether. Those that remain have sharply increased premiums, reflecting the heightened risk environment. These additional costs are feeding directly into freight rates.

Shipping routes are also being reconfigured. Longer journeys mean higher fuel consumption and tighter scheduling. Even where trade continues, it does so at a higher price.

Trade rerouted, not stopped

Exports to Gulf countries have been heavily disrupted. In many cases, vessels are no longer completing their intended routes. Cargo is instead unloaded at the nearest safe port and redirected through alternative channels.

The logistics sector has responded with characteristic flexibility. Goods are increasingly shifted from sea to land transport where possible. This keeps trade moving, but at significantly higher cost and complexity.

For Italy, the effects are uneven. Ports such as Ravenna, which are closely tied to eastern trade routes, are particularly exposed. Exporters face delays, higher costs and reduced predictability.

Suez under renewed strain

The situation is compounded by renewed uncertainty around the Suez Canal. After a tentative return to normal traffic, shipping companies are once again avoiding the route.

Diversions around the Cape of Good Hope have become more common. This adds considerable time to journeys between Europe and Asia and further increases fuel and operational costs.

Geography is now shaping competitiveness. Adriatic ports are losing ground to their Tyrrhenian counterparts, which are better positioned for westward routes via Gibraltar. The shift highlights how quickly logistical advantages can change under geopolitical pressure.

The cost of instability

What is unfolding is not a breakdown of global trade but a costly reconfiguration. Supply chains are proving resilient, yet that resilience comes at a price.

Every additional mile sailed, every insurance premium increased and every rerouted shipment feeds into higher costs for businesses and consumers alike. Energy markets, already sensitive to disruption, amplify these effects.

The chokepoints remain open in parts and constrained in others, but the signal is clear. In a world of interlinked supply chains, instability in one corridor is enough to unsettle the entire system.