Unrest in the Middle East and Rising Transport Costs: Impacts on the Import-Export of Steel Wire Ropes
Geopolitical tensions in the Middle East are increasingly affecting international trade and global supply chains. The steel wire rope and cable sector is also inevitably impacted by these dynamics.
Many raw materials and industrial products are transported by sea between Asia, Europe, and the Middle East. When major shipping routes become unstable or more expensive, the impact spreads across the entire supply chain, including the production and distribution of steel wire ropes for industrial applications1.
Longer Routes and Delivery Times
A significant portion of global trade passes through strategic areas such as the Red Sea, the Strait of Hormuz, and the Suez Canal. According to some analyses, around 30% of global container trade passes through the latter, making it a crucial route for trade between Asia and Europe2.
Therefore, any tensions or security issues in these areas can slow down maritime traffic and increase transport costs. When shipping companies avoid these areas for safety reasons, vessels are forced to take longer routes, for example via the Cape of Good Hope, resulting in extended delivery times and higher fuel consumption.
The diversion of maritime routes is one of the most immediate consequences of geopolitical tensions. When ships cannot safely transit through the Red Sea or the Suez Canal, they must sail around Africa.
This can lead to:
- up to 10–14 additional days of navigation
- a significant increase in fuel consumption
- higher operating costs for shipping companies
For many companies involved in international trade, these delays can affect the availability of components and materials needed for production.
Rising Fuel Prices
One of the main factors influencing maritime transport costs is fuel price, which in many cases accounts for between 40% and 60% of a vessel’s operating costs3.
In recent months, geopolitical instability has driven up marine fuel prices, prompting shipping companies to introduce surcharges and rate adjustments.
Surcharges and Increased Logistics Costs
In addition to rising fuel costs, many shipping companies are applying surcharges related to route risk and security. These include fuel surcharges and war risk surcharges—additional fees to cover fuel costs and potential conflict-related risks.
According to industry analyses, rising fuel prices can increase international freight rates by 15% to 25%4.
Consequences for the Wire Rope and Cable Sector
In the steel wire rope and cable industry, logistics plays a fundamental role. These are heavy and bulky products that are primarily transported by sea.
When maritime transport costs increase, several consequences arise:
- higher costs for imported raw materials
- increased logistics expenses for companies
- longer delivery times
- potential changes in final product pricing
An Evolving Global Context
Geopolitical tensions highlight how closely international trade is tied to the stability of maritime routes and energy markets.
For industrial companies, it is therefore becoming increasingly important to monitor global developments and carefully plan procurement and transportation strategies.
Furthermore, the current unrest in the Middle East is triggering a chain reaction that directly affects the steel wire rod market through three main channels: energy, logistics, and raw materials. At the Wire & Tube trade fair in Düsseldorf (the leading global event for the wire and cable and drawing industry), it is not only machinery that is on display—this is where prices and strategies for the following two years are shaped5.
In a future article, we will explore in greater detail how all these factors contribute to rising costs and, consequently, to the increase in steel wire rope prices.
Notes
https://www.eurofuni.com/categoria-prodotto/cavi-di-acciaio-per-pesca-industriale/cavi-di-acciaio/
https://www.jpmorgan.com/insights/global-research/supply-chain/red-sea-shipping
https://www.freightamigo.com/en/blog/logistics/top-factors-influencing-ocean-freight-rates-in-2025-navigating-uncertainty-in-global-shipping/
https://www.freightamigo.com/en/blog/logistics/navigating-the-impact-of-rising-fuel-prices-on-international-shipping/