According to CCTV Finance, disrupted traffic through the Strait of Hormuz sharply increased shipping expenses and war risk insurance premiums as rerouting and insurance costs strained trade and supply chain security.
Middle East conflict disrupted shipping through the Strait of Hormuz, causing freight costs to rise by 11 times to 12 times, according to a report cited by CCTV Finance. The disruption also drove war risk insurance premiums rapidly higher, while added insurance and rerouting costs continued to affect global trade and supply chain security. The developments underscore how conflict in a key maritime chokepoint can quickly raise transport costs and disrupt trade flows.