Iran conflict drives global seafood costs higher

The conflict in Iran is creating ripple effects across the entire global seafood supply chain, as transportation, fuel, and insurance costs surge simultaneously. After more than a month, the pressure has extended beyond logistics to impact fishing, aquaculture, processing, and consumption.Disruptions in the Middle East, particularly around the Strait of Hormuz and the Red Sea, have forced many shipping routes to divert via the Cape of Good Hope, extending Asia–Europe transit times by 10–15 days. Container freight rates have risen by more than 20%, along with fuel and insurance surcharges, significantly impacting seafood—a sector heavily dependent on cold-chain logistics. In the Middle East, prices of imported seafood from Asia such as shrimp, pangasius, tilapia, and squid have increased, with occasional shortages reported. Air freight is also under pressure as fuel costs surge, driving up distribution costs for fresh products like salmon and directly affecting profit margins.

 

In capture fisheries, rising fuel prices have forced many fishing vessels to reduce trips or suspend operations. In aquaculture, the impact is slower but more prolonged, as feed, electricity, and input costs increase across the board. On the demand side, inflation is causing consumers to cut spending, especially on higher-value foods like seafood, weakening demand in many major markets. Amid rising costs, longer delivery times, and uncertain demand, businesses are becoming more cautious with long-term orders. Even if tensions ease, elevated cost levels may persist for several years.

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