{"id":14693,"date":"2026-03-02T12:15:13","date_gmt":"2026-03-02T12:15:13","guid":{"rendered":"https:\/\/www.expanamarkets.com\/?post_type=insight&#038;p=14693"},"modified":"2026-03-02T15:42:47","modified_gmt":"2026-03-02T15:42:47","slug":"middle-east-conflict-likely-to-impact-feed-additives-and-transportation-costs","status":"publish","type":"insight","link":"https:\/\/www.expanamarkets.com\/insights\/article\/middle-east-conflict-likely-to-impact-feed-additives-and-transportation-costs\/","title":{"rendered":"Middle East Conflict: Likely to Impact Feed Additives and Transportation Costs"},"content":{"rendered":"\n<!-- .module.article-rich-text: start -->\n<div id=\"\" class=\"module article-rich-text pt-32 md:pt-48 xl:pt-56 pb-40 md:pb-64 xl:pb-80 hidden show-small:block show-medium:block show-large:block [p_+_p]:mb-24\">\n\t<p><span data-contrast=\"none\">Participants in the global feed additive markets have\u00a0identified\u00a0growing concerns and increased activity following the escalation of the conflict in the Middle East, noting that the event is likely to drive up sea freight costs and increase shipping times.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335557856&quot;:16777215,&quot;335559738&quot;:300,&quot;335559739&quot;:300}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">&#8220;We expect a significant increase in freight costs; higher crude oil prices will add additional pressure through bunker surcharges. Energy-intensive products will face upward pressure as well<\/span><span data-contrast=\"none\">,<\/span><span data-contrast=\"none\">\u00a0with\u00a0rising crude prices. Uncertainty and psychological effects will also result in a firmer stance on\u00a0nearly all\u00a0products \u2013 freight-sensitive items will show the first clear reaction,&#8221; commented a European trader.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335557856&quot;:16777215,&quot;335559738&quot;:300,&quot;335559739&quot;:300}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">A second European trader echoed these concerns, confirming an increase in freight costs. &#8220;People are worried. There is more activity,&#8221;\u00a0<\/span><span data-contrast=\"none\">they<\/span><span data-contrast=\"none\">\u00a0said.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335557856&quot;:16777215,&quot;335559738&quot;:300,&quot;335559739&quot;:300}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">According to the latest Drewry&#8217;s report from February 26, spot rates on Asia\u2013Europe trade routes continued to decline, with Shanghai\u2013Rotterdam rates falling 1% to $2,094 per 40ft container and Shanghai\u2013Genoa rates dropping 2% to $2,826. While volumes typically rebound in March as Asian factories reopen, rates are expected to remain under pressure due to rising capacity. We therefore expect spot rates on these routes to soften in the coming weeks.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335557856&quot;:16777215,&quot;335559738&quot;:300,&quot;335559739&quot;:300}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335557856&quot;:16777215,&quot;335559738&quot;:300,&quot;335559739&quot;:300}\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/library.urnerbarry.com\/Images\/SHIPPING_1.png\" width=\"1177\" height=\"478\" \/>\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">A feed-grade vitamins producer highlighted the already tight supply for key vitamins, including vitamins A, E and B3, particularly of EU origin, and its significant impact on\u00a0logistics.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335557856&quot;:16777215,&quot;335559738&quot;:300,&quot;335559739&quot;:300}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">&#8220;The\u00a0supply-demand\u00a0situation remains very tight globally. Although some markets are already partially covered for Q2,\u00a0mainly in\u00a0Europe<\/span><span data-contrast=\"none\">&#8230;t<\/span><span data-contrast=\"none\">his creates uncertainty\u00a0regarding\u00a0future availability. Tightness in EU-origin material is driving price differences based on origin. These developments are occurring against the backdrop of ongoing military actions in the Middle East, which are directly\u00a0impacting\u00a0sea freight and are expected to further increase shipping times,&#8221; the producer commented.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335557856&quot;:16777215,&quot;335559738&quot;:300,&quot;335559739&quot;:300}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Another producer acknowledged uncertainty. \u201cW<\/span><span data-contrast=\"auto\">e are checking the situation\u00a0carefully as well \u2013 Indeed it could have an effect on availability since now all vessels need to be sent to Europe via Africa, Oil prices may increase and it is rather unclear whether the conflict will only last 4 weeks,\u201d said the source.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335557856&quot;:16777215,&quot;335559738&quot;:300,&quot;335559739&quot;:300}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The majority of\u00a0global feed additives used in\u00a0animal nutrition are imported from China and other regions into the Americas and Europe, which means that any logistic disruption is considered a key price driver for these markets. Prices for deliveries in\u00a0Europe\u00a0have been steady to slightly firmer over the past two weeks, amid muted activity with China\u2019s\u00a0<\/span><span data-contrast=\"none\">n<\/span><span data-contrast=\"none\">N<\/span><span data-contrast=\"none\">ew\u00a0<\/span><span data-contrast=\"none\">y<\/span><span data-contrast=\"none\">Y<\/span><span data-contrast=\"none\">ear holidays. The markets are expected to be more active from this week onwards.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335557856&quot;:16777215,&quot;335559738&quot;:300,&quot;335559739&quot;:300}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">According to\u00a0Dow\u00a0Jones,\u00a0oil prices\u00a0are\u00a0expected to remain elevated in the coming days as the conflict escalates in the Middle East. They are assessing the impact on supplies, particularly flows through the Strait of Hormuz, a conduit for more than 20% of global oil.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335557856&quot;:16777215,&quot;335559738&quot;:300,&quot;335559739&quot;:300}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Crude futures surged more than 8% on Monday to multi-month highs following U<\/span><span data-contrast=\"none\">.<\/span><span data-contrast=\"none\">S<\/span><span data-contrast=\"none\">.<\/span><span data-contrast=\"none\">\u00a0and Israeli attacks on Iran that killed Supreme Leader Ali Khamenei, with Tehran striking back against Israel and at least seven other countries.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335557856&quot;:16777215,&quot;335559738&quot;:300,&quot;335559739&quot;:300}\">\u00a0<\/span><\/p>\n\t<\/div>\n\t<!-- .module.article-rich-text: end -->","protected":false},"excerpt":{"rendered":"","protected":false},"author":81,"featured_media":3191,"template":"","tags":[119,125],"insight-theme":[166],"insight_topic":[316,149,317],"news_topic":[],"class_list":["post-14693","insight","type-insight","status-publish","has-post-thumbnail","hentry","tag-energy-and-transport","tag-feed-additives","insight-theme-weekly-market-insights","insight_topic-energy-and-transport","insight_topic-feed-additives-and-animal-nutrition","insight_topic-middle-east-conflict"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Middle East Conflict: 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