Hormuz crisis raises indirect risks for global textile shipments

03 Mar '26

2 min read

Hormuz crisis raises indirect risks for global textile shipments

Pic: Shutterstock.com

Insights

The Strait of Hormuz closure chiefly disrupts energy flows.
Textile trade faces indirect strain via higher fuel, freight and insurance costs, noted Drewry.
Potential diversions around the Cape of Good Hope could extend transit times, tighten container supply, and raise working capital needs, pressuring margins across export-driven apparel value chains.

The “technical” closure of the Strait of Hormuz on February 28, 2026, following escalating conflict in the Middle East, has primarily disrupted crude, LNG, and LPG movements. However, maritime research and consulting services company Drewry noted that the fallout could extend indirectly to global textile and garment trade, particularly through higher freight and fuel costs rather than direct route blockage.

In a special report, Drewry cautioned that broader regional instability could distort vessel positioning. If ships avoid certain areas or face delays, container availability and scheduling reliability may weaken, leading to longer transit times and supply chain uncertainty. In an extreme escalation scenario spilling into the Red Sea, carriers could divert around the Cape of Good Hope, adding 10-14 days to Asia-Europe voyages.

Commercial shipping has been forced to suspend operations in parts of the Persian Gulf, with vessels idling near Oman or diverting away from the Strait. Heightened war risk premiums, GPS interference, and security threats in the Red Sea corridor have added to operational uncertainty. Any sustained escalation could spill over into container and breakbulk segments that handle textile raw materials, yarns, fabrics and finished apparel.

For textile-exporting nations in Asia, longer voyage times via the Cape of Good Hope (COGH) would increase transit duration and bunker consumption, pushing up freight costs. Import-dependent markets in Europe and North America may face shipment delays, particularly for time-sensitive fashion cycles. Higher marine insurance premiums and congestion at alternative routes could further inflate landed costs.

Drewry observed that the supply chain disruption at energy chokepoints often has second-order effects on manufacturing hubs. Rising crude prices translate into higher polyester feedstock costs, while freight rate volatility affects both raw material imports and garment exports. Countries heavily integrated into global value chains could experience margin pressure if logistics costs surge.

Although major regional powers are expected to seek swift reopening of the Strait, the risk of prolonged disruption remains. In such a scenario, textile and apparel supply chains may need to factor in longer lead times, higher working capital requirements, and increased freight budgeting.

Drewry added that it continues to monitor vessel movements and security developments closely, as maritime stability in the Gulf remains critical not only for energy flows but also for the smooth functioning of global merchandise trade, including textiles and garments.

Fibre2Fashion News Desk (KUL)

More Textiles News - Global...