European Supply Chain Disruptions: Ocean Freight, Road Transport Costs and Current Market Impacts

Ultrapolymers Logistics Team

Updated as of 27th March 2026

Significant disruptions to logistics routes due to heightening geopolitical tensions in the Middle East are affecting ocean freight availability, lead times, costs, and insurance conditions for materials moving into Europe from Asia, the Middle East, and other regions. With this, European read transport costs are rising due to higher fuel prices, tightening carrier capacity and structural market changes. Together, these factors are increasing overall logistics costs and lead times for transporting materials into Europe.

To help navigate these changes, this article provides a clear overview of the situation, outlining the specific effects on European supply chains from our highly experienced logistics team in Ultrapolymers and global parent company, Ravago.

How Sea Freight Disruption Is Affecting European Imports

For sea freight, bringing materials into Europe from the east, there are two key maritime routes: the Strait of Hormuz and the Red Sea.

• The Straight of Hormuz, one of the world's most critical shipping routes, in particular for oil and gas, is a pinch point between Iran, the United Arab Emirates, and Oman. Though not physically blocked, this route is effectively closed to commercial shipping as vessels attempting to pass through here have faced severe security incidents. As a result, marine insurers have withdrawn automatic war-risk coverage, and no major ocean carrier is currently routing vessels through the Strait.
• The Red Sea and Suez Canal between Africa and Asia is another vital maritime inlet that connects the Indian Ocean to the Mediterranean. This route remains open, but not without risk.

Port Restrictions and Shipping Line Responses

Across the Arabian Gulf, most major ports are currently affected by booking suspensions or operational restrictions. This includes ports in the United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Kuwait and Iraq.

Alternative gateways out of the Strait of Hormuz are congested and no longer accepting new export bookings. Some shipping lines have declared End of Voyage for cargo already on route, meaning containers may be discharged at alternative ports pending further instructions from cargo owners.

Across the market, carriers have introduced a combination of measures to global trade lanes feeding into Europe. These include:

• Booking suspensions for affected Middle East ports
• War risk, emergency contingency and fuel surcharges amounting to several thousand USD per container
• Service withdrawals or vessel deviations, including diversions around the Cape of Good Hope.

Insurance and Cost Implications for European Supply Chains

The current logistics disruption is affecting both insurance availability and transport costs, with the two closely linked. Changes in risk exposure, routing and fuel prices are feeding directly into carrier pricing and service decisions.

Major insurers have cancelled War, Strikes, Riot and Civil Commotion (WSRCC) cover for large parts of the Arabian Gulf, Red Sea, Gulf of Aden and adjacent waters. This means shipments to, from, or via these regions now require case-by-case insurance approval, often with additional premiums and specific conditions. This withdrawal of cover is a key driver behind carrier booking suspensions, service withdrawals and rerouting decisions, as vessels cannot legally operate without adequate insurance protection.

The rerouting of ocean freight is driving up transport costs due to longer sailing distances, higher fuel consumption, increased insurance costs, the introduction of war risk, emergency contingency, and fuel surcharges.

Impact on European Road Transport and Inland Distribution

European road transport is less affected than sea freight, so local producers and distributors with local stock are the go-to for materials at present.

Rising Diesel Costs and Fuel Surcharges in European Road Transport

European road transport costs are rising due to higher diesel prices, driven by volatility in global energy markets following the Middle East conflict. The rapid increase in fuel prices has led carriers to request emergency diesel surcharges to reflect real-time cost exposure.

To maintain reliable road transport services, a temporary weekly fuel surcharge mechanism has been introduced. Starting at 9%, this is expected to rise to 15% in the near future.

Altogether, transport costs will rise by 10-15% as soon as next week, the week commencing the 16th March.

European Road Transport Capacity Remains Stable and Available

Despite the cost pressures, road transport availability across Europe remains stable. While demand has increased slightly compared to last year, reflecting a gradual strengthening of the European economy, this has not led to widespread disruption of inland distribution networks.

Road transport is not subject to the same geopolitical, insurance or routing constraints currently affecting sea freight and imports. Such transport can continue to be relied upon as a robust and dependable link within European supply chains, even as global logistics conditions remain challenging.

How European Customers Are Affected by Current Logistics Conditions

Whilst our teams actively review affected flows and negotiate with carriers, insurers and logistics partners, this is what to expect:

• Temporarily limited or delayed material (from affected origins).
• Extended lead times.
• Elevated logistics costs.

Our Approach to Maintaining Supply Continuity

At Ultrapolymers, we are:

• Closely monitoring real-time port congestion and carrier advisories.
• Issuing regular updates on both ocean and European road freight developments
• Proactively identifying impacted shipments and alternative routing options.
• Engaging with insurers and transport partners to secure viable, compliant solutions
• Keeping customers informed with transparent, up-to-date communication

If you have questions about specific materials, routes or deliveries, your usual Ultrapolymers contact will be happy to support you.

What to Expect in the Coming Months

The situation remains fluid and can change quickly. Continued geopolitical uncertainty, rising fuel costs and tightening transport capacity mean the coming months may remain challenging, particularly around holiday periods and peak demand weeks.

We will continue to update this page weekly or as significant developments occur, to ensure you have the clarity needed to plan with confidence.

For the latest updates or tailored guidance, please contact your local Ultrapolymers representative.

What else is happening in the polymer market?