Food manufacturers fret as Iran war sends diesel, logistics, packaging cost soaring
They are now bracing for higher electricity and natural gas prices
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[SINGAPORE] Already under pressure from sharply rising energy, logistics and raw material costs due to the conflict in the Middle East, Singapore’s food manufacturers are bracing for more headwinds – such as higher natural gas and electricity prices – in upcoming months.
The war has shut down the Strait of Hormuz, a critical channel for around 20 per cent of the world’s oil and liquefied natural gas supplies, pushing up energy prices.
This in turn wreaked havoc on packaging supply chains by disrupting the supply and export of naphtha which is used to produce plastics, including those used for food packaging.
