The severe armed conflict that started this weekend in the Middle East is not reported to have directly impacted the production or demand of shrimp globally.
Indirectly, India, Indonesia and Vietnam are major exporters to the Western regions. In 2025, the US and Europe accounted for over half of India’s shrimp export revenue, markets noted for their competitiveness and sensitivity to price.
Consequently to the conflict between Israel, the US and Iran, the closure of the Red Sea access will induce an estimated two-week delay and additional freight costs for containers sent from these countries to Europe and beyond, as they now must reroute around Africa.
Source: Indian customs, Expana
As a result of these delays, local importers are likely to face a short period without any deliveries from Asia. This would usually tighten supply temporarily; however, the US and Europe reportedly hold substantial year-end shrimp inventories so far this year, which should provide a temporary buffer before new supply is needed.
The next demand momentum in Europe and the US comes around the Easter break and the spring season (notably May in Europe), when holidays and long weekends typically boost seafood consumption. In this context, the key element that remains uncertain is the duration of the conflict and how long rerouting will be required, as this determines the ability to organise sea freight without disrupting the shrimp trade.
In addition to these logistical considerations, there is the risk that rising oil prices feed through to higher production costs, since pond operation, transport, and shrimp processing require energy; the unknown duration of the conflict and the uncertain extent of the oil price increase complicate financial planning for these additional output expenses.
Global Markets on Edge: The Expanding Impact of Hormuz Disruption
Escalating Middle East tensions are disrupting transit through the Strait of Hormuz, driving volatility across oil, freight and broader commodity markets. Join Expana’s live Intelligence Briefing for cross-market analysis, price risk scenarios and the key indicators shaping markets in the days ahead.
March 03 | 3:30PM GMT
Written by Fabienne O'Donoghue