Summary: In early March 2026, military conflicts between the US, Israel, and Iran sharply escalated, leading to the blockade of the Strait of Hormuz, a global energy transportation artery. This sudden event has put global shipping in a state of extreme tension, with its impact on the depth and breadth of the supply chain far exceeding the previous Red Sea crisis. Wuxi High Mountain Hi-tech Development Co., Ltd. is constantly monitoring the international situation, and by strengthening supply chain resilience and optimizing logistics solutions, we are committed to ensuring the stable global supply of our core products—Chloroacetic Acid (MCAA), Sodium Formaldehyde Sulfoxylate (SFS), and para-Dichlorobenzene (p-DCB).

1. Strait of Hormuz "Suspended", Liquid Bulk and Container Markets Experience Severe Turmoil

The Strait of Hormuz is the world's most important oil and liquefied natural gas (LNG) transportation channel. With the strait blockaded, the global shipping market reacted quickly:

• Shipping Paralysis and Vessel Detention: Iran prohibited vessel transit, causing vessels around the strait to generally anchor at zero speed or return. Global top shipowners, including Maersk and MSC, have instructed vessels to avoid the area.

• Freight Rate Surge and Port Congestion: Middle East crude oil outbound transportation has almost been interrupted, with VLCC freight rates surging to over 200,000 USD/day. In container transportation, regional hubs such as Dubai Jebel Ali Port have temporarily suspended operations or are severely congested, and ship companies have suspended accepting orders to ports within the Persian Gulf.

2. Global Supply Chain Chain Reaction: Diverting via Cape of Good Hope and Rising Costs

The conflict escalation has put unprecedented pressure on the global supply chain:

• Capacity Shortage and Increased Voyage: A large number of vessels are forced to reroute via the South African Cape of Good Hope, adding 15-20 days of voyage, directly leading to a structural shortage of global effective capacity, with fuel costs also significantly increasing.

• Rising Insurance Costs: The threat level has been raised to the highest, with war risk premiums soaring, severely affecting shipping operations.

• Energy Commodity Price Increase: Soaring crude oil prices will push up global shipping fuel surcharges and transfer inflationary pressure to end consumers, and the supply of Middle East raw materials such as pesticide fertilizers and chemical products required for semiconductor manufacturing will also face the risk of stockout.

3. High Mountain Hi-tech: Active Response, Ensuring Global Stable Supply

Facing the sudden international shipping crisis, Wuxi High Mountain Hi-tech immediately launched an emergency response plan:

• Searching for Alternative Solutions: We are working closely with freight forwarding enterprises to find alternative solutions such as Cape of Good Hope routing, China-Europe Freight Trains, etc., and closely monitor vessel companies' real-time announcements and war risk premium rate changes.

• Stable Supply of Core Products: By strengthening supply chain management in our core products—Chloroacetic Acid (MCAA), Sodium Formaldehyde Sulfoxylate (SFS), and para-Dichlorobenzene (p-DCB)—we deepen technical innovation and professional services, improve quality, and ensure the stable and efficient global supply.

We will continue to uphold the corporate spirit of "Integrity and Excellence," deepen supply chain management, build a more secure and efficient resource bridge for you, especially in our core products—Chloroacetic Acid (MCAA), Sodium Formaldehyde Sulfoxylate (SFS), and para-Dichlorobenzene (p-DCB)—ensuring the stable and efficient global supply.