How long does the freight forwarder estimate it will take for Strait of Hormuz traffic and associated supply chains to return to normal after reopening?

The freight forwarder, Lynn Stacy of OEC Group Liquid Logistics Solutions, stated that even if the Strait of Hormuz reopened tomorrow, supply chains would not return to normal until some time in the first quarter of 2027 — a timeline stretching several months into the future. He emphasized that this prolonged recovery is due to the immense logistical inertia involved: container ships and tankers require four to six weeks just to travel from the Middle East to destination ports, followed by offloading, refining, product storage, and then restarting logistics for finished goods. As Stacy explained, 'Once it goes into storage, guess what? Logistics starts over again.' This sequential, time-intensive process — compounded by potential infrastructure damage and storage bottlenecks — means normalization cannot happen quickly, aligning with chemical industry executives’ assessments of a 'very long tail' requiring 'months, and quarters, but much longer than that until things balance out.'

What alternative route did OEC Group use during the conflict, and why was it viable despite higher costs?

During the conflict, OEC Group redirected Persian Gulf shipments through the Red Sea, initially landing at Jeddah port in Saudi Arabia and later shifting to King Abdullah Port when Jeddah became congested; from there, products were moved inland by truck. This route remained viable because customers involved in drilling and oil production prioritized continuity over cost — as Stacy noted, 'The cost of shutting down for one day greatly outweighs the additional logistics costs and just trucking it across the desert.' The willingness of critical-sector clients to absorb premium logistics expenses enabled OEC to maintain supply flow despite the disruption, underscoring how operational urgency can override economic inefficiency in high-stakes industrial contexts.

Freight Forwarder Expects Hormuz Traffic Recovery to Take Months

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A freight forwarder warns Strait of Hormuz traffic could take months to normalize, prolonging elevated chemical and plastic prices. Industry leaders from LyondellBasell and Dow concur, highlighting significant logistical bottlenecks affecting global supply chains.

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Freight Forwarder Expects Hormuz Traffic Recovery to Take Months

Freight Forwarder Expects Hormuz Traffic Recovery to Take Months

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