In a statement published on 2 March 2026, Logistics UK said supply chains are already being affected by disruption around the Strait of Hormuz and by flight cancellations, which it argues will raise costs through rerouting, delays and higher insurance premiums.
The organisation highlighted that the Strait of Hormuz is a key chokepoint for energy trade, with around one-fifth of global oil consumption moving through it daily. Logistics UK said oil prices were already rising and that the impact would “soon be seen at the UK’s pumps”.
Logistics UK chief executive Ben Fletcher warned that logistics providers operate on “incredibly narrow margins” and that sharp fuel price increases would likely be passed on to customers. The group is therefore urging Reeves to use her upcoming Spring Forecast to “bolster business confidence and supply chain resilience”, including by reviewing the government’s decision—set out in the Autumn Budget 2025—to begin increasing fuel duty.
Fuel duty has been effectively frozen for many years, with the 2025 Budget maintaining the freeze but outlining plans to gradually reverse the additional temporary cuts introduced in earlier years.
Although the request is aimed at UK fiscal policy, the warning is relevant for international shippers and hauliers because higher energy and insurance costs linked to Hormuz disruption can filter quickly into freight rates, surcharges and consumer prices across multiple markets. Reuters and the Financial Times reported on 2 March that the Hormuz situation has heightened oil-market concerns, with analysts assessing scenarios that could drive prices materially higher if disruption persists.
Logistics UK also cautioned that, while the sector is seeking alternative routes, the UK could face knock-on impacts “across the summer” for goods arriving by sea, and said it is in contact with government to monitor developments and risks to logistics personnel operating in the region.
