Tensions surrounding the Strait of Hormuz have disrupted global supply chains, with Japanese companies facing broader effects including higher crude oil prices, stalled logistics and rising insurance premiums. Securing alternative routes and reviewing supply chain design are essential.
The Strait of Hormuz has effectively been closed following the conflict between the United States and Israel and Iran, causing energy prices to surge, raising concerns over the supply of naphtha and naphtha-derived products, and triggering widespread disruption to international logistics and inventory shortages. This has driven up marine logistics insurance premiums and could push up companies’ costs.
There is a view that the impact will not subside immediately even after the crisis eases, and the timing of a return of fuel costs and fuel surcharges to previous levels remains uncertain. Elevated insurance premiums may also persist for an extended period.
Japanese companies have been advised to redesign their global supply chain management and establish business continuity plans to secure alternative logistics options. It is also considered important for senior management to use this opportunity to deepen its understanding of supply chains.
Drawing on accounts that senior management at leading Western companies has a high level of awareness in this area, Japanese companies are likewise being urged to strengthen their ability to respond to risks and their strategic management of supply chains.