Prolonged Strait of Hormuz Crisis: Soaring Ocean Freight Rates and a Double Squeeze on Packaging Costs

Overview

Following the U.S.–Israeli airstrikes on Iran on February 28, 2026 (Operation Epic Fury), Iran's Revolutionary Guard began restricting transit through the Strait of Hormuz, triggering what has become known as the "Hormuz Strait Crisis" — now approaching its fifth month. Tensions appeared to ease temporarily when both sides signed the Islamabad Memorandum of Understanding on June 17. However, with Iran and Oman subsequently announcing plans to impose transit fees on Hormuz passage, uncertainty has resurged in July.

References: Newspim — Tensions rise again in the Strait of Hormuz

Beyond crude oil and LNG supply chains, the crisis is spreading cost pressure across the packaging industry through container freight rates and plastic resin prices.

1. Container Freight Rates Hit New Yearly Highs

Drewry's World Container Index reached $4,639 per 40ft container as of July 9, 2026 — up 2% week-over-week and the highest level since September 2024. Spot rates on major routes from Shanghai:

References: Drewry — World Container Index, Freightos — Container rates jump

According to Korean media outlet Edaily, the Shanghai Containerized Freight Index (SCFI) rose 4.6% week-over-week to 3,122 points — a new yearly high, roughly 32% above the same period last year and about double pre-crisis levels.

Reference: Edaily — Middle East risk far from over (Korean)

Key drivers behind the rate surge include the reintroduction of War Risk Surcharges following the Iran/Oman transit fee announcements, an additional 10–14 sailing days from Cape of Good Hope diversions, and worsening congestion at major transshipment hubs including Shanghai, Ningbo, Busan, and Singapore.

2. Polyethylene (PE) — A Core Packaging Feedstock — Spikes

After the February 28 military clash, crude oil jumped from $69 to $113 per barrel. Polyethylene, the key raw material for packaging film, saw industry-reported price increases of 30 cents per pound. Some analyses indicate European spot polyethylene prices surged 70–80% between February and April.

References: PlasticsToday — From Hormuz to resin, Packaging Gateway — Strait of Hormuz crisis drives up plastic packaging costs

In Southeast Asia, regional resin prices reportedly rose 50–100% between March and April, adding inflationary pressure in countries heavily dependent on resin imports. (Current July spot resin prices should be re-verified through commodity pricing platforms such as ICIS or Platts.)

By contrast, the pulp and paperboard market has been relatively insulated. Supply chains from major pulp exporters — Brazil, Canada, Sweden, and Finland — to paper mills in Asia and Europe sit largely outside the direct impact of oil price swings, though rising ocean freight costs are being passed through indirectly.

Reference: Othila Pak — How the Strait of Hormuz is Impacting the Global Packaging Supply Chain

3. Container Equipment Shortages and Route Restructuring

At the peak of the crisis, roughly 2,000 vessels were stranded near the Persian Gulf, temporarily locking up an estimated 470,000 TEU of capacity. While conditions have partially normalized, a shortage of 40ft container equipment persists across intra-Asia trades — and with peak-season demand layering on top, booking lead times continue to lengthen.

References: The Loadstar — Container shortage crisis spreads to intra-Asia trades

4. Implications for Korea

Korea relies on the Middle East for roughly 70% of its crude oil imports, and sources a substantial share of its LNG from Qatar and other countries whose exports transit the Strait of Hormuz. Rising energy prices and shipping network restructuring translate into pressure on both freight costs and raw material prices for Korea's packaging industry, which imports feedstock for processing and export.

References: SeaVantage — Strait of Hormuz blockade impact analysis (Korean), Korea Policy Briefing — Korean vessels inside the Strait of Hormuz (Korean)

5. Outlook

Carriers expect limited profitability gains despite higher rates, as war-risk insurance premiums, route delays, and vessel waiting costs mount simultaneously. For the packaging industry, with raw material and logistics costs rising in parallel, companies are expected to increasingly re-examine their cost structures and push for oil-price and freight-rate indexation clauses in supply contracts.

Reference: ZDNet Korea — Hormuz tensions flare again (Korean)