The Port of Liverpool has recorded a more than 200% increase in enquiries from fertiliser importers as supply chain uncertainty linked to the Strait of Hormuz prompts companies to review their logistics strategies. Importers are examining alternative UK gateways, larger vessel deployment and increased storage capacity to improve resilience against continuing disruption in global shipping markets.
The rise in enquiries comes despite there being no immediate shortage of fertiliser supplies in the UK. However, disruption in the Gulf has increased shipping costs and marine insurance premiums while driving up natural gas prices, raising concerns over future procurement costs. Importers are also considering stockpiling strategies to guard against prolonged market instability and potential interruptions to global supply chains.
Importers seek alternatives
Peel Ports said the majority of fertilisers are traditionally imported through ports on the UK’s east coast. However, uncertainty surrounding shipping routes has encouraged importers to consider alternative locations. Liverpool’s ability to accommodate deep-sea vessels, combined with its position on the west coast, is attracting growing interest from customers seeking greater supply chain flexibility.
There is also increasing demand for warehousing capacity across north-west England as importers seek to build inventory. Companies are looking to secure products when they become available and reduce exposure to disruption elsewhere in their supply chains. The strategy reflects broader concerns that continued uncertainty in international trade could leave markets vulnerable to sudden supply interruptions or significant cost escalation.
Peel invests
“Customers are looking closely at how they can strengthen resilience across their supply chains,” said Phil Hall, Port Director Liverpool at Peel Ports Group. “For many, that means reviewing vessel choice, storage capacity and alternative ports to ensure they can continue to move product efficiently despite ongoing uncertainty in global markets.”
Peel Ports has been preparing for greater handling capacity. “We have invested millions in facilities such as the recently developed Alexander Warehouse,” added Hall. “Although we took the decision well before the situation in Iran, that speculative move does mean we are now ready to support this market as interest increases for immediate solutions that can support fertiliser imports and provide greater supply chain flexibility.”
Global market remains exposed
The Strait of Hormuz is one of the world’s most important fertiliser shipping corridors. Around one-third of global seaborne fertiliser trade passes through the waterway, including shipments of urea, ammonia and sulphur, as well as liquefied natural gas used in nitrogen fertiliser production. The Gulf region is a major exporter of fertiliser products and feedstocks, with Qatar among the world’s leading suppliers of urea.
Although Britain’s direct dependence on Gulf fertiliser imports is comparatively limited, the market remains exposed to global price movements. The UK sources fertilisers from a diverse range of suppliers, including domestic manufacturers and producers in continental Europe, North Africa, Norway and the Middle East. Consequently, the immediate impact has been on costs rather than on the physical availability of the product.
Long-term stockpiling concerns
European fertiliser prices have risen sharply above recent averages as traders respond to higher freight costs and increased uncertainty. Importers and distributors have also begun precautionary purchasing to secure future requirements. The UK market relies heavily on imported urea, ammonium nitrate and phosphate products, increasing the importance of port infrastructure capable of supporting efficient discharge, storage and inland distribution.
Some fertiliser cargoes have continued to transit the Strait of Hormuz, and tanker movements are recovering gradually, albeit at reduced levels. However, analysts warn that prolonged disruption could tighten global inventories of ammonia and urea, leading Europe to seek additional imports from alternative suppliers and potentially reshaping established trade patterns.
Consumer prices threatened
For British agriculture, the principal risk is a sustained increase in costs rather than an immediate shortage of fertiliser. Higher nitrogen prices would place additional pressure on farm margins and increase production costs across the arable and livestock sectors. Any prolonged dislocation in fertiliser supply chains could eventually contribute to higher food prices and alter the flow of bulk cargoes through UK ports and inland distribution networks.
Peel Ports Group handles approximately 70 million tonnes of cargo annually, equivalent to around 14% of total UK major port traffic. The operator said growing interest in Liverpool demonstrates how geopolitical uncertainty can quickly influence cargo routing decisions and drive demand for additional supply chain resilience.