Company Announcements
March 3, 2026
AMSCI flags maritime trade implications as Middle East conflict unfolds
Written by Kristen DiLandro
The American Metals Supply Chain Institute (AMSCI) said increasing insurance premiums, potential vessel diversions, and contractual risk evaluations began in the global freight market as geopolitical conflict escalates in the Persian Gulf region.
The current conflict takes place amidst some of the largest and most strategic maritime trade routes on the planet. Following joint military strikes by the US and Israel on Iran beginning Saturday, Feb. 28, assessment of safety, security, and structural viability of the Persian Gulf, Strait of Hormuz, Gulf of Oman, and Red Sea corridors continue.
AMSCI’s Executive Director Alexandra Jopp provided SMU with input from the advocacy group, outlining immediate implications.
“Heightened security concerns in these strategic waterways, combined with recent adjustments to war-risk insurance coverage by major underwriters, are contributing to market uncertainty and operational reassessments by shipowners,” said AMSCI.
The same statement noted, “These dynamics are manifesting in higher insurance premiums, potential vessel diversions, and contractual risk evaluations that are already affecting global freight markets.”
AMSCI’s statement pointed to comments by Anton Posner, CEO of Mercury Group during his appearance on Bloomberg TV’s China Show on March 2.
“While many ports continue to load and discharge cargo today, the primary focus for maritime stakeholders is on transit feasibility and risk management,” Posner said.
Rerouting vessels around the Cape of Good Hope will cause delays for international shippers in multiple industries beyond metals. Constrained vessel availability could create increases to freight rates and cause disturbances to the supply chain.
AMSCI said it is actively evaluating the “operational, contractual, and risk management considerations as the situation evolves, and the Institute will continue to provide timely updates.”
