The 2026 Middle East conflict highlighted how geopolitical shocks can affect energy markets and global logistics networks, with implications for business costs in Singapore’s Transport and Storage sector.
Imported oil prices surged 78.9% month-on-month in March 2026 following restrictions along the Strait of Hormuz, with the effects flowing through to Transport and Storage Services to varying degrees. In 2Q 2026, Sea Freight Transport prices rose 25.4% quarter-on-quarter, while Freight Forwarding prices increased 10.2%. Postal and Courier Services prices also recorded larger increases, whereas Cargo Handling and Warehousing Services prices saw more modest movements. These differences reflected varying exposure to fuel costs, disrupted trade routes, surcharges, and pricing arrangements.
As developments in the Middle East continue to evolve, the Singapore Government has introduced support packages to help businesses and households manage cost pressures. Against this backdrop, the Producer Price Indices provide timely insights into emerging price pressures, supporting businesses and policymakers in understanding evolving cost conditions.