How the Middle East Conflict Is Impacting Packaging Supply (And What Buyers Should Do Now)

How the Middle East Conflict Is Impacting Packaging Supply

(And What Buyers Should Do Now)

The ongoing conflict in the Middle East is creating significant disruption across the global supply chain—and the effects are now being felt throughout the packaging industry.

While many are following the headlines, the full impact on plastics and packaging is often underestimated. This is not a typical market fluctuation. It is a full supply chain disruption affecting raw materials, production, and logistics all at once.

What’s Actually Happening

At the center of the issue are disruptions to:

Crude oil and natural gas production
LNG (liquefied natural gas) supply
Refineries and petrochemical facilities
Global shipping routes, including the Strait of Hormuz

These are the foundational inputs required to produce polyethylene (PE) and polypropylene (PP)—the core materials used in most packaging products.

When these systems are disrupted simultaneously, the impact compounds quickly.

Why Packaging Supply Is Tightening

There are three main forces driving the current market:

1. Raw Materials Are Harder to Source

Key feedstocks used to produce plastics are becoming less available due to production cuts and infrastructure disruptions.

2. Production Is Slowing

Manufacturers around the world are reducing output as they struggle to secure consistent material supply.

3. Shipping Is More Difficult and Expensive

Even when materials are available, moving them has become more challenging due to restricted shipping lanes, rising insurance costs, and freight volatility.

What We’re Seeing in the Market

The result is real, measurable pressure across the industry:

Raw material costs increasing significantly (often 15%–50%)
Continued upward pressure on petroleum-based products
Ocean freight increases of $4,000–$6,000 per container
Rising domestic transportation and handling costs

At the same time, lead times are becoming less predictable, and certain products are beginning to tighten in availability.

What This Means for Buyers

If you rely on packaging materials, the takeaway is simple:

Expect continued price volatility
Plan for longer lead times
Anticipate potential supply constraints on key items

Waiting until the last minute to place orders in this environment increases the risk of delays, higher costs, or limited availability.

What Smart Buyers Are Doing Right Now

Companies that are staying ahead of the disruption are:

Placing orders earlier than usual
Sharing forecasts with suppliers
Locking in supply where possible
Working closely with partners to plan ahead

How Hercules Is Responding

At Hercules Incorporated, we are actively working across our global supply network to:

Secure material through multiple sourcing channels
Manage inventory strategically
Minimize disruption for our customers

Our goal is simple: keep your business running without surprises.

Final Thought

This is not a short-term disruption—it is a dynamic, evolving situation that is impacting the entire packaging supply chain.

The companies that plan ahead will be in the strongest position.

Need Help Planning Ahead?

If you have upcoming orders, forecasts, or concerns about supply, our team is here to help.