For UK supply chain managers, 2026 has turned a long-running shipping problem into a much bigger one. The disruption in the Red Sea, which began in late 2023, has now been joined by a second crisis in the Strait of Hormuz. Together, they have made two of the world’s most important shipping routes unreliable at the same time.
With the vast majority of the UK’s goods trade by volume moving by sea, these disruptions reach far beyond the shipping industry. They affect stock levels, delivery promises, energy bills and margins for importers, manufacturers and retailers across the country. This guide looks at how the situation developed, what it means for costs and what practical steps UK businesses can take now.
How the crisis developed
The first problem began in November 2023, when Houthi forces in Yemen started attacking commercial vessels near the Bab al-Mandeb Strait, the southern entrance to the Red Sea and the Suez Canal. Most major container lines responded by sending Asia-Europe services the long way around Africa, via the Cape of Good Hope. A lull in attacks in late 2025 led some carriers to consider a return to Suez, but those plans were largely shelved as tensions rose again.
The second, larger shock came on 28 February 2026, when the United States and Israel launched strikes on Iran. Iran responded by blocking shipping through the Strait of Hormuz, which normally carries around a fifth of the world’s oil and liquefied natural gas. A US-Iran memorandum of understanding in mid-June briefly eased the situation, but it broke down in early July after further attacks on commercial ships, and the strait has since remained largely closed to routine traffic.
For shippers, the result is a dual-chokepoint problem. Cargo bound for Europe faces longer routes, while energy and goods moving to and from the Gulf face severe restrictions. Neither issue looks likely to resolve quickly.
What it means for UK costs
The most visible effect is time. Routing around the Cape of Good Hope typically adds one to two weeks to Asia-Europe voyages, which ties up more vessels and containers and reduces the capacity available for everyone else.
Costs have risen on several fronts at once. Ships on longer routes burn more fuel, war-risk insurance premiums for voyages near conflict zones have climbed sharply, and carriers have added surcharges to cover the extra expense. On top of that, the Hormuz closure pushed up global oil and gas prices, which feeds through into fuel, manufacturing and transport costs across the UK economy.
Sectors that rely on regular deliveries of parts or stock from Asia, such as automotive, electronics and retail, are particularly exposed. Longer and less predictable lead times can mean production delays, gaps on shelves and pressure on margins as businesses decide whether to absorb higher costs or pass them on to customers.
Practical steps for UK supply chain managers
There is no single fix, but a few measures can make a supply chain noticeably more resilient in a prolonged disruption.
- Review contracts versus spot buying. Relying entirely on the spot market can leave cargo rolled when space is tight. Longer-term agreements with carriers or forwarders can give more predictable access to capacity, although no contract removes risk completely.
- Build in realistic lead times. Plan around Cape routing as the normal case rather than the exception, and adjust reorder points and safety stock to reflect longer and more variable transit times.
- Keep a multimodal option ready. For urgent or high-value goods, air freight or combined sea-air services can bridge gaps when ocean schedules slip. Agreeing these options in advance is far easier than arranging them in a crisis.
- Improve visibility. Tracking tools that provide updated arrival estimates help businesses react early, whether that means rescheduling production, warning customers or switching transport mode.
- Check customs readiness. Since Brexit, documentation errors are a common cause of delays at UK ports. Making sure paperwork is right first time avoids adding customs hold-ups to already longer journeys.
- Plan the inland leg. Arrivals at Felixstowe, Southampton and London Gateway still need to reach warehouses and stores. Rail connections from these ports can ease pressure on road haulage and help keep onward deliveries on schedule.
Choosing a logistics partner in a crisis
When routes and costs change week by week, the choice of logistics partner matters more than usual. Useful questions to ask include how a provider secures space with carriers, which transport modes it can switch between, how it tracks shipments and shares updates, and whether it handles UK customs clearance in-house or through third parties.
Global forwarders with UK operations can help with this kind of flexibility. Scan Global Logistics, for example, offers ocean freight alongside air, sea-air and inland services, with UK offices in Aylesford in Kent and Colnbrook near Heathrow. Whichever provider a business chooses, it is worth comparing how each one responds to disruption, not just its headline rates.
Conclusion
The combined disruption in the Red Sea and the Strait of Hormuz has made 2026 one of the most difficult years for global shipping in decades, and UK businesses are feeling the effects in longer lead times and higher costs. The situation remains fluid, so plans should be reviewed regularly rather than set once.
Supply chains that treat longer routes as the new normal, keep alternative transport options ready and work with partners who communicate clearly will be better placed to protect their customers and margins, however long the disruption lasts.
