As of late March 2026, escalating tensions in the Middle East, especially around the Red Sea and the Strait of Hormuz, are seriously disrupting logistics. Increasing freight and insurance costs, longer shipment periods because of route modifications, and possible production slowdowns for raw material-dependent Indian sectors are the main causes for concern. Vessel traffic across the Strait of Hormuz has been halted due to ongoing military operations. Standard transit times between Asia and Europe have been extended by 10 to 20 days as a result of numerous carriers, such as Maersk and CMA CGM, rerouting ships around the Cape of Good Hope.
