The Impact and Solution Direction of International Baking Raw Material Import and Export Trade under the Situation of the US Iran War

Continuous fluctuations in the US-Iran situation have affected the global foreign trade export chain, particularly maritime transportation and insurance, which directly impact the operating costs of baking raw material exporters. We specialize in baking raw material exports, focusing on baking powder, yeast, bread improver, food essence, and various food additives, with a focus on large-scale shipments and long-term services for overseas baking factories. Faced with rising export costs, we share industry-adaptable coping ideas and our practical adaptation measures.

We respond rationally to global trade fluctuations, and while we cannot fully resolve all cost challenges, we strive to adapt to changes and maintain stable supply for overseas customers through our own advantages. Below, we share the actual impact of the situation and practical adaptation measures (aligned with our company’s capabilities).

I. The Actual Impact of the US-Iran Situation on Baking Ingredient Export Costs

Cost changes brought by the US-Iran situation mainly focus on two core areas: shipping and additional costs, which are specifically reflected in our large-scale export scenarios as follows:

Ⅰ) Reasonable Fluctuations in Shipping Costs

Stricter navigation control in the Strait of Hormuz has led shipping companies to adjust capacity or adopt alternative routes, resulting in a 15%-25% increase in maritime costs for bulk shipments to the Middle East. Tight shipping space requires 15-20 days of advance booking, and rising marine fuel prices and detour surcharges further add to costs. The industry generally mitigates such uncertainties by cooperating with reliable freight forwarders and preparing alternative routes; we also adjust our shipment batches rationally to balance cost and timeliness within our capabilities.

Ⅱ) Orderly Adjustment of Additional Costs

In addition to shipping costs, additional cost adjustments mainly involve insurance and customs clearance — hidden expenses that can be optimized through rational planning.

In terms of insurance, war risk premiums in the Gulf region have doubled. Our bulk baking ingredients (such as baking powder and yeast) require adequate insurance; we optimize our insurance plans through communication with professional institutions to control expenses within a reasonable range, in line with industry common practices.

In terms of customs clearance, Middle Eastern ports (e.g., Dubai, Jeddah) have tightened inspections, occasionally causing short-term detention and extra fees. We sort out port clearance requirements in advance, improve documents (certificates of origin, health certificates, etc.) for our products, and optimize transshipment routes within our capacity to reduce potential risks and costs.

II. Pragmatic response strategies for the export of baking raw materials

Drawing on our export experience, we adapt to rising costs by optimizing internal processes, integrating available resources, and strengthening communication. Specific measures (aligned with our company’s capabilities) are as follows:

I) Optimize Shipping Plans Within Capabilities

We cooperate with long-term freight forwarders to book shipping space in advance and strive for reasonable freight discounts. We also refer to alternative industry routes to avoid high-risk areas and consolidate same-region, same-type orders for FCL shipping to reduce unit transportation costs.

Ⅱ) Control Additional Costs Prudently

For insurance, we tailor plans based on route risks and negotiate long-term discounts with institutions to avoid unnecessary expenses. For customs clearance, our team prepares compliant documents in advance, strictly follows target market regulations for our products, and pays close attention to port dynamics to improve efficiency.

Ⅲ) Stabilize Supply Chain Within Our Capacity

We plan inventory reasonably and reserve safety stock for core products (baking powder, yeast, and bread improver) to avoid supply delays. We also establish real-time logistics tracking to keep customers informed of shipment status and strengthen communication to adjust quotation and shipment plans mutually.

Ⅵ) Leverage Our Core Advantages

We focus on large-scale baking ingredient exports, with stable product quality and standardized export processes. Faced with rising costs, we avoid arbitrary price increases and absorb partial pressure through internal optimization. We also provide appropriate customized solutions based on customer purchase volume and delivery cycles.

III) Summary

The US-Iran situation-induced cost increase is an industrywide challenge. We do not claim to solve all problems, but we adapt rationally by optimizing shipping plans, controlling costs prudently, stabilizing supply within our capabilities, and improving service quality, ensuring a stable supply for overseas customers.

In the future, we will continue to monitor market changes, optimize our adaptation measures, and provide stable, cost-effective baking raw material supply services. We also look forward to communicating and cooperating with industry colleagues to address challenges and achieve steady development.

Release time: 2026-04-20