Asia Freight Pressure and Iran Sanctions Risk Keep Packaging Costs Elevated

Executive Summary — August 24, 2026

Galaxy begins Monday with three immediate cost and sourcing risks: elevated Asia-to-U.S. East Coast freight, severe disruption in the Strait of Hormuz, and a major new U.S. Iran sanctions announcement expected at 1:00 PM ET today.

Drewry’s World Container Index is approximately $4,526 per 40-foot container. Shanghai-to-New York is approximately $9,507 per 40-foot container, up 9% week over week.

Commercial vessel traffic through the Strait of Hormuz remains severely restricted, keeping bunker, diesel, war-risk insurance and petrochemical feedstock costs exposed.

Galaxy Actions

1. Book critical September Asia-to-New Jersey cargo early.
2. Require all freight quotations to show base freight, Panama, fuel and war-risk charges separately.
3. Keep customer freight and resin quotations short-validity until the Iran sanctions details are known.
4. Require exact resin producer, grade and official producer circular before approving supplier increases.
5. Audit open China, Vietnam, India and Bangladesh purchase orders for HTS, origin and Chapter 99 treatment.

CEO Bottom Line

Protect freight and resin margins today. Reject undocumented blanket increases and buy by exact resin grade, producer and verified replacement cost.