Hormuz and Red Sea shipping risks

Iran said on April 22 that the Strait of Hormuz could not reopen while it says ceasefire violations continue, leaving one of the world’s busiest shipping lanes effectively shut. (france24.com) Traffic through Hormuz was still far below normal on April 23, with CNBC reporting that more than 100 vessels crossed daily before the war but only about a dozen commercial ships transited on Monday. Bloomberg reported that only one ship was seen moving through the waterway early Thursday after Iran said it had seized two vessels. (cnbc.com) (bloomberg.com) A queue of more than 600 ships, including 325 oil tankers, has built up around the strait, according to vessel-tracking analysts cited last week. Clearing that backlog is expected to take weeks even if passage conditions improve. (arabianbusiness.com) The second choke point is farther west at Bab el-Mandeb, the narrow entrance to the Red Sea that feeds the Suez Canal. Carriers that had tried to resume Suez voyages pulled back again in March as security risks rose, sending ships around the Cape of Good Hope instead. (maersk.com) (hapag-lloyd.com) That detour turns a shortcut into a much longer loop. The United Nations Conference on Trade and Development said in September 2025 that ships that once crossed the Red Sea in days were sailing for weeks around southern Africa, with higher freight rates, delays and emissions. (unctad.org) Beauty and personal care companies are exposed because many formulas and containers depend on petrochemicals, specialty chemicals and packaging that move through Gulf and Red Sea routes. Reuters, in a report distributed by Bilyonaryo News Channel this month, said the disruption was pushing up the cost of plastic jars, lipstick tubes and transport. (bnc.bilyonaryo.com) Industry analysts say the pressure is not limited to finished goods. Storyboard18 reported on April 22 that Indian beauty brands including Lakmé, Minimalist, Mamaearth and The Derma Co rely on raw materials or intermediates sourced from or routed through the Gulf region. (storyboard18.com) The Red Sea disruption has already cut deeply into the Suez Canal’s traffic base. UNCTAD said global maritime trade now operates in a more volatile environment, and Egypt said in April 2025 that Suez Canal revenue had plunged by almost two thirds in 2024 because regional conflict drove ships away. (unognewsroom.org) (euronews.com) Iran says the waterway cannot reopen under current conditions, while the United States says a ceasefire extension keeps diplomacy alive. For importers waiting on ingredients, packaging and finished stock, the immediate reality is the same: longer routes, higher insurance bills and delivery dates that can move by days or weeks. (news.un.org) (france24.com)