New data from major trade credit insurer Atradius has revealed a sharp rise in claims in the transport sector for unpaid and late invoices.
The company has shared its monthly claims data for the first full month since the Iran War outbreak, which reveals a spike in transport sector claims, signalling volatility for businesses and consumers.
Atradius said its research shows that the Iran conflict is putting transport supply chains under real pressure, with the data revealing a 70% rise in claims in March compared to the previous month.
Disrupted airspace, shipping instability and rising fuel costs are contributing to slower and more expensive movement of goods across global supply chains, increasing operational pressure for both shippers and receivers of cargo.
The Iran conflict has intensified volatility in global energy markets, with disruption to key routes such as the Strait of Hormuz driving up oil prices and feeding through into higher transport and logistics costs.
Consumers will also be feeling the hit, the insurer notes, with US petrol prices rising by around 50% since the Iran conflict began – with the economic shock feeding into higher UK wholesale fuel costs, pushing up pump prices and increasing costs across the transport and automotive sector.
Nicola Harris, Atradius senior underwriter, commented: “The Iran war has sent a massive ripple through the transport supply chain, at a time when the UK is already vulnerable to rising freight, fuel and energy costs - piling the pressure onto firms that are already operating on thin margins.
“Surging fuel prices and supply chain blockages are further harming haulage providers, many of whom have no room to absorb further economic shocks. As a result, businesses have no choice but to pass higher costs onto customers.
She added: “Caution within the sector will remain crucial as the war continues. At times like these, it’s critical that businesses have the right protection in place to safeguard liquidity as the market continues to shift.”
