Good day!

Global shipping lanes are currently under significant strain, with the effects being felt across every sector reliant on international trade. At IMD, we believe it is important to communicate openly about the current situation, what it means in practical terms, and the measures necessary to assist you to safeguard your supply chain.

The Middle East Crisis

Since late 2023, Houthi attacks on commercial vessels in the Red Sea have reshaped one of the world’s busiest maritime corridors. The Bab el-Mandeb Strait once carried approximately 12 to 15 per cent of global trade and 30 per cent of all container traffic between Asia and Europe. 

By April 2026, this sat at a “moderate threat level” with major carriers still unwilling to commit to regular transits. A ceasefire in Gaza brought some relief towards the end of 2025, but renewed hostilities involving Iran, the United States, and Israel quickly unravelled that progress.

IMD has not been insulated from these conditions. A number of our own shipments were caught up in the Strait of Hormuz during the peak of the disruption, held in the waterway for several weeks before onward transit became possible. We are pleased to confirm that those shipments are now on their way to their destinations. This experience has only reinforced our commitment to proactive communication and forward planning with our customers.

When Iran temporarily restricted access to the Strait of Hormuz between February and April 2026, the consequences were immediate and severe. Roughly 20 per cent of the world’s oil and natural gas passes through that waterway. Brent crude climbed past US$126 per barrel at its March 2026 peak, rising more than 10 to 13 per cent in early trading in a single week. Maersk, CMA CGM, and Hapag-Lloyd all suspended transits through the Strait and the Red Sea, rerouting their fleets south around Africa’s Cape of Good Hope. It was the largest disruption to global energy supply since the 1970s.

What Has Happened to Fuel & Freight Costs?

Key Figures at a Glance

• Suez Canal transits: Down from 2,068 per month (Nov 2023) to roughly 877 (Oct 2024), a fall of over 57%
• Extra distance via Cape of Good Hope: Approximately 11,000 nautical miles (20,000 km) added per voyage
• Added transit time: 10 to 14 days per voyage
• Added fuel cost per vessel: Up to US$1,000,000 per voyage
• Goods disrupted (Oct 2023 to May 2024): Estimated US$1 trillion worth of cargo (Russell Group)
• Asia to Europe freight rates (mid-2026): 25 to 40% above pre-crisis levels
• Asia to US East Coast rate premium: 15 to 25% above pre-crisis levels
• Brent crude peak (March 2026): US$126 per barrel

Bunker fuel is the single largest operating cost for a container vessel, and its price has been extraordinary. In early March 2026, the average price of Very Low Sulphur Fuel Oil (VLSFO) across the world’s top 20 bunkering hubs hit approximately US$960 per tonne, close to double the pre-conflict average. Between late February and mid-March alone, Singapore fuel prices rose 118 per cent, and Rotterdam prices climbed 62 per cent. These are not gradual increases. They happened in a matter of weeks.

For South Africa, the picture has been particularly sharp. As more and more vessels reroute around the Cape, Durban has become a critical bunkering stop. The increased demand has pushed VLSFO at Durban to approximately US$1,480 per tonne, compared to US$639 in Rotterdam and US$722 in Singapore at the same time. Buyers in South Africa have reportedly paid more than double what they were paying just weeks before the escalation. Supply shortages at the port have compounded the pressure further.

These costs are not limited to the routes directly affected. Shipping lines are implementing Bunker Adjustment Factors (BAFs) and war-risk surcharges across their global networks, while road freight surcharges in major markets have increased by approximately 50% as rising diesel prices continue to impact ground transport costs. Any supply chain connected to international shipping is, in one way or another, experiencing the effects of these disruptions.

What This Means for Industrial Minerals

The reality is that no commodity remains insulated from the current situation. Longer transit routes, tightening vessel capacity, and growing congestion at major trans-shipment hubs such as Singapore and Tanjung Pelepas are collectively contributing to extended lead times and increased landed costs. This has become the operational baseline for businesses reliant on global sea freight.

For products such as Chromite Sand and Micro Talc, where both consistency of supply and technical precision are critical, the margin for disruption is already limited. Fertiliser prices have, in some instances, risen by as much as 32% within a single week following disruptions in the Strait of Hormuz corridor, while chemical supply chains supporting industrial processing operations continue to encounter mounting bottlenecks. The resulting pressure across manufacturing environments escalates rapidly under these conditions.

Adding to this, the disruption to normal trade flows has created a pronounced container imbalance that is being felt acutely in South Africa. There is currently a shortage of 20-foot empty containers available for export, a direct consequence of the rerouting and repositioning of equipment globally. Some carriers have begun to ration container availability as a result, introducing an additional layer of uncertainty for exporters reliant on consistent equipment supply.

War-risk insurance premiums have also increased substantially. For large oil tankers, transit insurance costs have risen from approximately 0.125% to between 0.2% and 0.4% of insured vessel value. On a single voyage, this can equate to an additional cost of roughly USD 250,000. Ultimately, these costs are absorbed further down the supply chain by the end purchaser of the goods being transported.

Looking Ahead

We want to be honest about the outlook, too. Industry consensus as of mid-2026 is that Cape of Good Hope rerouting will remain the default for most Asia-to-Europe and Asia-to-US East Coast services through at least 2027. The Strait of Hormuz has seen some reopening of commercial traffic, but conditions remain fragile, and carriers are not planning for a return to normal any time soon.

For our customers, this is a good moment to think about forward planning, healthy stock buffers, and the value of suppliers who have already built the logistics relationships to navigate disruption. We are here for those conversations.

Supply chain resilience does not show up when everything is running smoothly. It shows up in moments exactly like this one. We are grateful for the trust you place in us and we will keep working to earn it.

Thank you for being part of the IMD network. As always, please do not hesitate to reach out if you have questions about how any of this affects your specific supply arrangements.

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For industry insights and news from the world of industrial minerals, stay connected with IMD. Follow us on LinkedIn and visit our website for more information.

Best Regards,
Independent Mineral Distributors (IMD)

A Heritage of Mineral Excellence

From the globally recognised platinum group metals of our land to the invaluable industrial minerals that power industries across the globe, South Africa is a country whose resources have shaped the world.  

DID YOU KNOW?  South Africa is the top global exporter of chrome, accounting for 17.8-million tonnes of the 21.8-million tonnes exported in 2023.  

We are proud to contribute to South Africa’s mineral excellence as a trusted distributor of industrial minerals. With each shipment and every collaboration, we are part of South Africa’s journey towards an even more prosperous future.

A Proudly South African Company with a Global Vision

While our roots are deeply South African, our vision stretches far beyond our borders. Our partners across the globe receive only the highest quality products from Southern Africa and other world regions.

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Follow us on LinkedIn and visit our website for more information.

Best regards,
Independent Mineral Distributors (IMD)

Why Sea Freight is Under Pressure

Imports and exports by sea are under considerable pressure, reflecting escalating tension between carrier capacity and shipper demand. Red Sea diversions are complicating logistics and contributing to extended travel times.

Many companies are changing their buying behaviour and placing large year-end orders early. Although consumer demand itself is relatively stable, companies are keen to avoid costly stock-outs. These ongoing global shipping pressures create intense competition for shipping slots, increasing both import and export costs.

Quality is Priceless

At IMD, we promise quality, reliability, and excellence. We strive to give our customers access to high-quality, competitively priced industrial minerals. We can only live up to these promises by adjusting prices across our product range.

Follow us on LinkedIn and visit our website for more information.

Best regards,
Independent Mineral Distributors (IMD)

Micro Talc

Micro talc is a finely milled mineral powder that is a key ingredient in products produced by the paint and coatings industries. Market leaders like Dulux  and Prominent Paints trust our micro talc for its quality and the exceptional properties it brings to their formulations.

Did you know that our micro talc is available in both Grade ST 20 and Grade ST 480?  We strive to give our clients access to a range of industrial minerals for diverse applications.

Our micro talc is packaged in 25 kg and 500 kg poly bags for your convenience.

Pyrophyllite

IMD connects customers in several industries with the finest pyrophyllite.

Are you looking for a filler that helps achieve superior results in waterproofing? Wonderstone Pyrophyllite LG  is your first choice. Its hydrophobicity properties help your final product repel moisture. The foundry and refractory industries also trust our Wonderstone Pyrophyllite LG for its exceptional thermal properties in high-temperature processes.

Our Wonderstone Pyrophyllite LG can be packaged in 25 kg bags on pallets or 500 kg bulk bags.

Work with Us

Thinking of placing an order for our Micro Talc ST 20,  Micro Talc ST 480 or Wonderstone Pyrophyllite LG? As experts in imports and exports of containerised cargo, you can rely on IMD for reliable, secure transportation.

The estimated transit time to the Middle East is 14-20 days. If you’re located in South America, the estimated transit time is 45-60 days.

Ultimately, these timelines depend on your exact location. We encourage you to reach out to our team to discuss your requirements.

Stay Connected

For industry insights and news from the world of industrial minerals, stay connected with IMD. Follow us on LinkedIn and visit our website for more information.

Best regards,
Independent Mineral Distributors (IMD)

Established in 1988, IMD has been a stalwart in the mining minerals landscape, fostering long-term partnerships with leaders in several industries, including the foundry, refractory, coatings and paint industries.

We pride ourselves on sourcing and distributing raw materials of the highest quality. This includes foundry grade chrome sand, construction grade iron oxides, micro talc, andalusite, and pyrophyllite.

Experience and reliability are highly prized in all industries, and mineral distribution is no exception.

IMD is highly knowledgeable in imports and exports of containerized cargo and bulk shipments. We offer secure transportation with a range of convenient packaging options.