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CIPS polling reveals growing uncertainty across global supply chains as Strait of Hormuz crisis unfolds

New snap polling from the Chartered Institute of Procurement & Supply (CIPS) paints an uncertain picture for global supply chains as escalating tensions in the Middle East disrupt one of the world’s most critical trade and energy corridors.

The unprecedented closure of the Strait of Hormuz, a strategic chokepoint for global energy and trade flows, has already triggered volatility in oil and LNG markets and halted shipping through a route responsible for a significant share of global energy exports.

The polling was conducted during a CIPS webinar (09 March 26), “Risk, Resilience & Response: An Expert Panel on the Middle East Situation,” attended by over 600 senior procurement and supply professionals from across the world.

When asked whether their organisation had a contingency plan in place to mitigate the disruption such as the potential closure of the Strait of Hormuz, 45% of respondents said it was too soon to tell, 43% said no, and only 11% said yes.

The surprise strikes on Iran led to the unexpectedly swift effective closure of the Strait of Hormuz. The findings suggest that nearly nine in ten organisations were not ready for such a major shipping route to be blocked in such a way highlighting widespread uncertainty across global supply networks as the crisis continues to unfold.

The polling also indicates that businesses are largely still in a monitoring phase rather than actively restructuring supply chains. When asked whether the situation had already led their organisation to alter supply chains, 56% said no, 26% said yes, and 18% said maybe.

Looking ahead, 59% of respondents said it is too early to determine whether the crisis will permanently reshape supply chains, reflecting the fluid and rapidly evolving geopolitical environment.

Ben Farrell, CEO of CIPS, said: "Procurement and supply professionals are on the front line of global trade disruption. What this situation demonstrates is that supply chains are not linear pipelines but complex global supply webs, where disruption in one critical node such as the Strait of Hormuz can ripple rapidly across industries, markets and continents.”

“This is not just about shipping routes; it is about energy security, global manufacturing and the cost of moving goods around the world. The Strait of Hormuz is one of the most strategically important energy corridors on the planet, and instability there immediately feeds into oil and LNG markets. When energy prices rise, transport costs increase, production costs increase, and those pressures eventually work their way through to businesses and consumers globally.”

“If vessels are forced to reroute around longer shipping lanes or face sustained delays, it increases freight costs, insurance premiums and transit times across global trade networks. Over time, that could translate into higher prices for everything from manufactured goods to food and consumer products.”

“The situation remains fluid, but procurement professionals are closely monitoring developments and activating contingency strategies where possible. Supply chains are more resilient than they were five years ago, but prolonged disruption in such a critical corridor will inevitably create cost pressures and operational challenges across the global economy."

The polling also highlighted the limited use of emerging technology in crisis response. 62% of organisations said they had not used artificial intelligence to help shape their response, with only 27% reporting the use of AI tools to analyse or plan supply chain mitigation strategies.

This suggests many organisations are still relying on traditional monitoring and decision-making processes rather than advanced data modelling or predictive analytics during periods of geopolitical disruption.

Poll Results Summary

Question: Did your organisation have a plan to mitigate the current situation (e.g. contingency for the closure of the Strait of Hormuz)?

  • Too soon to tell: 45% (154 of 341)
  • No: 43% (148 of 341)
  • Yes: 11% (39 of 341)

Question: Have you used AI to help shape your response?

  • No: 62% (191 of 306)
  • Yes: 27% (84 of 306)
  • Maybe: 10% (31 of 306)

Question: Has it already led your organisation to alter your supply chains?

  • No: 56% (159 of 282)
  • Yes: 26% (73 of 282)
  • Maybe: 18% (50 of 282)

Question: Is this situation likely to permanently reshape your supply chain?

  • Too soon to tell: 59% (178 of 304)
  • Yes: 21% (65 of 304)
  • No: 20% (61 of 304)