Taiwan Shippers Trapped: 7 Container Vessels Stuck in Hormuz

Hormuz Deadlock: When Geopolitics Freezes Global Container Flows

On 28 February, tensions between the US, Israel, and Iran escalated into an active conflict that has transformed one of the world's most critical maritime chokepoints into a potential crisis zone. Taiwan's three largest container carriers—Evergreen, Yang Ming, and Wan Hai Lines—now face a nightmare scenario: seven of their containerships are trapped in the Strait of Hormuz with no clear exit strategy. The three companies have formally petitioned Taiwan's government to negotiate their release, a move that signals both the severity of the situation and the limits of commercial solutions.

This is not a routine delay. The Strait of Hormuz handles approximately 20% of all seaborne petroleum traffic and a significant volume of containerized cargo moving between Asia and Western markets. Seven stuck vessels, while seemingly modest in absolute terms, represent lost capacity in a system already strained by post-pandemic congestion, supply chain diversification efforts, and rising fuel costs. More importantly, their entrapment raises a fundamental question: How resilient is your supply chain when a single geopolitical flashpoint can instantly remove multiple major carriers from service?

Operational Reality: Lead Times and Costs Under Pressure

For supply chain professionals sourcing from Asia, the implications are immediate and multifaceted. First, transit times are expanding. Vessels forced to reroute around Africa via the Cape of Good Hope add 10–14 days to typical Shanghai-Rotterdam transits and 5–7 days to Asia-US West Coast routes. Second, container availability is tightening. When vessels are stuck, their equipment (containers) cannot return to Asia for reloading, creating artificial scarcity in the very markets where it is most needed—precisely the opposite of what importers need during peak seasons.

Third, and most visible to procurement teams, freight rates are climbing. Spot rates on Asia-Europe and Asia-North America lanes typically increase 25–40% when major carriers lose vessel capacity, alternative routing is required, or demand temporarily shifts to air freight. For a company importing $10 million monthly in containerized goods, a 30% rate spike translates to $3 million in unbudgeted spend—a shock that cascades through P&Ls and can derail margin forecasts.

The Taiwanese carriers' call for government intervention is revealing. Unlike routine port congestion or weather delays, geopolitical entrapment cannot be solved by operational workarounds. The companies are implicitly acknowledging that commercial negotiations have failed and that only high-level diplomatic action can unlock their vessels. This dependency on government action introduces a new risk variable: political will and timeline uncertainty.

Strategic Implications: Rethinking Chokepoint Exposure

This incident should trigger a strategic reset in how companies manage geopolitical risk. The Strait of Hormuz has been a known vulnerability for decades—the 1973 oil embargo, the Iran-Iraq War, and multiple regional flare-ups have all tested its stability. Yet many supply chains treat it as a stable, taken-for-granted corridor. That assumption is now under stress.

Supply chain teams should conduct a rapid audit: What percentage of your Asia-sourced inventory transits Hormuz? For consumer electronics, automotive components, and pharmaceuticals sourced from China, India, or Southeast Asia, the answer is likely 40–60%. Next, quantify the impact: How many weeks of safety stock would you need to absorb a 3-month Hormuz closure? What is the cost of maintaining that buffer versus the cost of a disruption? What percentage of your sourcing can be redirected to suppliers in other regions (nearshoring, Mexico, Eastern Europe) without compromising cost or quality?

The path forward requires three moves. First, diversify routing: negotiate contracts with carriers that offer alternative route options and build flexibility into RFQs. Second, recalibrate inventory policies: increase safety stock for high-value, long-lead-time items and consider vendor-managed inventory (VMI) arrangements for less critical categories. Third, strengthen geopolitical monitoring: subscribe to real-time threat intelligence and establish decision triggers that activate contingency plans before disruptions fully materialize.

The seven trapped Taiwanese vessels are more than a headline—they are a reminder that supply chain resilience is not a luxury but a competitive necessity in an era of fractured geopolitics and fragmented trade.

Source: The Loadstar