Forwarding, Freight News, Logistics, Sea


Iran unlikely to close Strait of Hormuz, says forwarder

[ June 30, 2025   //   ]

It is very unlikely that Iran would try to close the shipping lanes in the Strait of Hormuz, says Ian Baxter, founder of freight forwarder Baxter Freight.

He says it would probably provoke a strong military response from the US and its allies. Moreover, it would harm the interests of Iran’s own allies as oil and LNG supplies would get choked off and prices rise. At the same time, it would harm Iran’s own economic interests as its own oil sales and imports would suffer.

But he added: “However, shippers should work closely with their freight forwarders to monitor the situation and prepare for every eventuality as they have done over the last few years when there have been many disruptions to trade flows through Brexit, the closure of the Suez canal, the Ukraine war and so on.

“Experience shows us that there are always options to keep freight moving; to increase inventories and find the best cost benefit value and it’s our job as logisticians to do that. Sometimes shippers will need to switch to safer routes, less congested ports, use different modes such as a sea-air blend rather than just ocean, consider selling on different terms passing the risk to their buyers in the region, choose to build up more local stock to mitigate risk or even pause shipments in the hope things calm down a little.

“Talk to your forwarder as they can always help you to find the right solution.”

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