Russia's Deputy PM Alexander Novak stated at SPIEF that the closure of the Strait of Hormuz and infrastructure damage in the Persian Gulf have led to a global energy market shortage of 12 million barrels daily and a dramatic rise in freight costs due to a lack of tankers.
As the cost of each kilometre food travels explodes, growers and consumers are looking for ways to shorten the supply chain.
Malaysia's durian exporters face mounting pressure as hot weather brings harvests forward, swelling supply while costs surge due to disrupted fuel supplies from the Iran conflict. Growers like Stephen Chow of Chow Kai Pheng Enterprise warn packaging and logistics costs could rise from 20% to 50% of export revenue, forcing cost-cutting measures at the worst possible moment.
Karex Bhd, the world's largest condom manufacturer, plans to raise prices by 20-30% due to supply chain disruptions caused by the Iran war. The Malaysian company, which produces over 5 billion condoms annually and supplies Durex, Trojan, UK NHS and UN programs, has seen costs surge for raw materials including synthetic rubber, nitrile and lubricants. Demand has risen about 30% this year as shipping delays leave customers with lower stockpiles, with shipments now taking two months instead of one.
Karex, the world's largest condom manufacturer, announced plans to raise prices by 20-30% with potential further increases if supply chain disruptions from the Iran war continue. The Malaysian company, which produces over 5 billion condoms annually and supplies brands like Durex and Trojan alongside the NHS and UN aid programmes, is facing surging costs for raw materials including synthetic rubber, nitrile, aluminium foils, and silicone oil since the conflict began in late February. CEO Goh Miah Kiat described the situation as fragile, stating the company has no choice but to transfer costs to customers while also noting a surge in demand as customers' stockpiles have dwindled.
Hong Kong retailers are employing aggressive cost-saving strategies including direct sourcing and economies of scale to absorb rising logistics costs from the Middle East conflict. However, leading cosmetics chain Sa Sa International has warned that shipping and airfreight costs have already surged 10-15%, with further pressure expected if the situation affects fuel supplies since many beauty products are petroleum by-products.
