{"id":160790,"date":"2026-04-22T15:23:36","date_gmt":"2026-04-22T15:23:36","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/all-news\/shipping-agents-warn-of-supply-chain-shock-amid-hormuz-crisis"},"modified":"2026-04-22T16:25:07","modified_gmt":"2026-04-22T16:25:07","slug":"shipping-agents-warn-of-supply-chain-shock-amid-hormuz-crisis","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/all-news\/shipping-agents-warn-of-supply-chain-shock-amid-hormuz-crisis","title":{"rendered":"Shipping Agents Warn of Supply Chain Shock Amid Hormuz Crisis"},"content":{"rendered":"<p><span class=\"ap-article-header-tag\"> <strong>Africa-Press &#8211; Kenya. <\/strong> <\/span>SHIPPING agents in Kenya have warned of further disruption in global trade and local supply chains as tensions in the Strait of Hormuz continues to disrupt maritime traffic. This has pushed freight costs higher and threatening inflationary pressure on the Kenyan economy.<\/p>\n<p>According to the Kenya Ships Agents Association (KSAA), which is affiliated to regional and global bodies, the unfolding crisis has now left close to 800 vessels stranded globally.<\/p>\n<p>This includes more than 450 crude oil tankers, while an estimated two million seafarers remain stuck at sea due to prolonged contracts and disrupted crew rotations.<\/p>\n<p>KSAA chief executive Elijah Mbaru said the situation remains highly volatile, with shipping schedules thrown into disarray and insurers retreating from high-risk routes.<\/p>\n<p>While there was hope after the announcement of a temporary re-opening amid talks, US President Donald Trump said the US will not lift its blockade on Iranian ports until a deal has been reached with Tehran, , amid continuing uncertainty over whether fresh talks to end the war will take place.<\/p>\n<p>\u201cClosure and re-opening has defined the past few days. For a brief moment, the market thought the situation was stabilising. Ships started moving again, confidence returned and prices reacted. But within hours, everything changed. Shots were fired, ships were hit and traffic slowed again,\u201d Mbaru said.<\/p>\n<p>The strategic waterway, through which roughly a fifth of the world\u2019s oil and liquefied natural gas passes, has effectively ceased to function as a reliable commercial shipping lane.<\/p>\n<p>Shipping traffic through the corridor has plunged by more than 95 per cent, forcing global carriers to reroute vessels around the Cape of Good Hope, adding 10 to14 days to journey times.<\/p>\n<p>The increase in delivery timelines has also significantly increased fuel and operational costs. The crisis has also triggered a sharp spike in war-risk insurance premiums, now up by more than 100 per cent, while some underwriters have halted coverage altogether.<\/p>\n<p>Banks, wary of escalating geopolitical risk, have also scaled back financing for ship owners, compounding the strain on global logistics. For Kenya, which relies heavily on imported fuel, fertiliser and manufactured goods, the ripple effects could be severe.<\/p>\n<p>Brent crude prices which surged past $150 per barrel early this month. However on Monday, the Brent crude benchmark oil price rose by more than four per cent to $94.20 a barrel, reversing a fall on Friday when Iran said the Strait was open.<\/p>\n<p>This raises the likelihood of higher pump prices, increased production costs and a fresh wave of inflation. Global supply disruptions are already spilling into critical sectors.<\/p>\n<p>About 20 million barrels per day of oil and natural gas liquids were affected in the initial weeks of the crisis, while shortages of natural gas, a key input in fertiliser production, are raising concerns over food security and future agricultural output.<\/p>\n<p>Major economies are also feeling the strain. The International Energy Agency has moved to release 400 million barrels from emergency reserves in a bid to stabilise markets, even as Asian refineries cut processing volumes due to feedstock shortages.<\/p>\n<p>Mbaru warned that prolonged disruptions could entrench stagflation, where high inflation is coupled with slow economic growth, posing risks not only to developed markets but also to import-dependent economies such as Kenya.<\/p>\n<p>\u201cLonger voyage times, higher insurance costs and limited financing will ultimately be passed down to consumers. This means more expensive goods, delayed deliveries and sustained pressure on the cost of living,\u201d he said.<\/p>\n<p>The crisis has been exacerbated by continued military escalation, including attacks on energy infrastructure in the Gulf and a naval blockade that has sharply reduced Iranian exports.<\/p>\n<p>A proposed \u201cpay-to-pass\u201d arrangement for vessels using the strait has been rejected by European powers, further dimming prospects for a quick resolution.<\/p>\n<p>With uncertainty hanging over potential ceasefire talks, industry players say global shipping networks may remain unstable in the near term, raising the risk of prolonged supply chain disruptions.<\/p>\n<p>For Kenya\u2019s import-driven economy, the warning from ship agents means even if the conflict eases, the aftershocks on freight costs, energy prices and inflation could linger well beyond the crisis itself.<\/p>\n<p>IMF has since lowered Kenya&#8217;s 2026 economic growth forecast to 4.5 per cent, down from 4.9 per cent due to rising inflation, high energy costs from the Middle East conflict shocks and reduced export demand. While GDP is expected to reach $147.26 billion (Sh19 trillion), growth is slowing, with inflation anticipated to average 5.9 per cent.<\/p>\n<p>Kenya\u2019s exports mainly tea, coffee and other agricultural produces have been affected with longer delivery time and high shipping costs also affecting raw material imports and other commodities, with local industry also hit.<\/p>\n<p class=\"ap-article-footer-note\">Find more news and analyses on <span class=\"ap-highlight-country\">Kenya<\/span> on the <span class=\"ap-highlight-brand\">Africa Press<\/span> website<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Kenya. SHIPPING agents in Kenya have warned of further disruption in global trade and local supply chains as tensions in the Strait of Hormuz continues to disrupt maritime traffic. This has pushed freight costs higher and threatening inflationary pressure on the Kenyan economy. According to the Kenya Ships Agents Association (KSAA), which is [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":160788,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[544],"class_list":["post-160790","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-kenya"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Shipping Agents Warn of Supply Chain Shock Amid Hormuz Crisis - kenya<\/title>\n<meta name=\"description\" content=\"-article-header-tag&quot;&gt; Africa-Press - Kenya. 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