Listen to This Episode Here:
This episode of The Chemical Show features Farid Tahvildari, Managing Director of NUCO Logistics. Returning to the podcast, Farid provides a straightforward analysis of the ongoing Strait of Hormuz and Red Sea crises and their far-reaching impacts on global shipping, freight costs, and chemical supply chains. He explains how even those not directly trading through these regions are affected by disruptions in marine traffic, rising insurance costs, and energy price volatility.
Key topics discussed in this episode:
- Strait of Hormuz Crisis: Why it matters for global shipping, chemicals, and energy—even for companies outside the Gulf region
- Red Sea Disruptions: The Houthis’ impact on marine logistics, workarounds, and why confidence in shipping lanes is as vital as their physical openness
- Adaptation in Action: How chemical and logistics companies have shifted to new routes, added shipping capacity, and developed operational flexibility
- Inventory Management: Avoiding the pitfalls of single-lane dependence and leveraging lessons learned from the COVID container crisis
- Small & Midsize Company Strategies: How those with less leverage can increase resilience
- Early Warning Signs: Key indicators—including port omissions, insurance premiums, and carrier announcements—that signal rising risk
- Long-Term Outlook: Why the industry is preparing for ongoing uncertainty and building a new normal rooted in flexibility
Killer Quote: “At the end of the day, by knowing where the exposures are, you can plan…work closely with your provider, whoever they are. That’s the key.” —Farid Tahvildari
Other Links:
- Strait of Hormuz Crisis: How Oil and Chemicals Are Affected Worldwide with Farid Tahvildari (Episode 257)
- Red Sea Shipping Issues and Resolutions with Farid Tahvildari of NUCO Logistics (Episode 152)
Watch This Episode on YouTube Here:
Strait of Hormuz & Red Sea Crisis Continues with Farid Tahvildari of NUCO Logistics
The chemical industry has weathered a series of unprecedented disruptions over the past several years: supply shocks from the COVID-19 pandemic, shifting trade tariffs, and ongoing geopolitical crises disrupting two of the world’s most critical maritime chokepoints: the Strait of Hormuz and the Red Sea/Suez Canal corridor. In this episode of The Chemical Show, Victoria Meyer sat down with Farid Tahvildari, Managing Director of NUCO Logistics, to break down how these events are shaping the landscape of chemical logistics and what leaders can do to ensure resilience.
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The Strait of Hormuz and Red Sea: Why They Matter
These strategic maritime routes are vital arteries for global commerce, particularly for the chemical industry. The Strait of Hormuz is a critical channel for 20% of the world’s oil supply, much of which supplies feedstocks for both chemical production and agriculture. As Farid explained, the closure, even partial, impacts not only local shipments but also regional and global carriers, insurance premiums, and market confidence. Even companies without direct business in the Persian Gulf feel the strain through increased freight rates and reduced reliability as surcharges and operational costs climb.
The Red Sea, particularly through the Suez Canal, offers the shortest route for vessels moving between Asia and Europe. Conflict in Yemen and the actions of the Houthi militia have forced many ships to abandon the Suez, opting instead for the much longer and costlier voyage around the Cape of Good Hope, adding up to two weeks to transit times. Both chokepoints are, for all practical purposes, closed or severely restricted—a reality the shipping industry has had to adapt to.
Adapting to Persistent Uncertainty
One of the most striking takeaways from the conversation was the adaptability the chemical and shipping industries have displayed. As Victoria pointed out, despite these ongoing disruptions, problem solvers have managed to keep product moving. How? The answer is a mix of contingency planning, excess inventory, and better communication across the supply chain.
The surge in ship orders over recent years created an unexpected buffer. Instead of retiring older vessels, carriers have kept them in service, increasing overall fleet capacity enough to offset the longer routes and delays caused by rerouting around chokepoints like the Suez. While this has helped mitigate the worst effects of delays and allowed movement to continue, it still comes at a price, primarily the added cost and complexity of longer voyages.
The New Rules: Planning and Optionality
The old model, relying on a single supplier or lane to squeeze out the lowest cost, is rapidly becoming obsolete. As Farid stressed, companies learned hard lessons during the COVID-19 pandemic about the danger of concentration risk. Today, resilience means intentionally building alternatives: multiple suppliers, flexible lanes, and realistic expectations on transit times and costs.
“Planning is the key,” Farid said, pointing out that having trigger mechanisms, clear contracts, and open lines of communication with partners can make all the difference. Companies are now embedding these lessons, working through contingencies in advance so that when a disruption does occur, everyone knows the plan.
Early Warning Signs and Proactive Moves
The disruptions aren’t going away anytime soon. According to Farid, meaningful change in the Strait of Hormuz situation isn’t likely until at least late 2026, after key elections in the US. In the meantime, shippers need to monitor key indicators: carrier announcements, rerouting notices, insurance premium movements, and, critically, port omissions. Port omissions in particular can force major last-mile changes, affecting how and where product is received and distributed.
Small and Mid-Sized Players: Punching Above Their Weight
It’s easy to imagine that only global giants can weather this storm, but Farid offered actionable guidance for smaller firms. Consolidation, proactive communication, and partnership with experienced logistics providers are vital. Smaller companies may have less leverage, but by working closely with their logistics partners, mapping their specific exposures, and developing clear response strategies, they can gain vital agility and resilience.
Disruptions are inevitable. The winners will be those who are prepared, who map their exposures, develop contingency plans, and build strong, responsive relationships with their logistics partners. The tools are available, from digital tracking portals to structured communications. What matters most now is adopting a planning mindset, staying agile, and never assuming that today’s solutions will last forever.
Change isn’t just possible—it’s guaranteed, and with disciplined planning, the chemical industry can continue to move forward, whatever the world’s shipping lanes may bring next.
About Farid Tahvildari:
Farid Tahvildari is the Managing Director of NUCO Logistics, Inc., a leading customs brokerage and logistics firm serving highly regulated sectors of global trade. With a background in finance, operations, and management, he blends commercial strategy with regulatory expertise to guide clients through complex, cost‑sensitive supply chains. Farid has deep experience in global trade dynamics and chemical sector compliance, helping importers and exporters optimize cross‑border operations. He has led NUCO’s national expansion, strengthened its compliance programs, and introduced specialized services for chemical distributors. Farid also contributes to industry education and advocacy through partnerships with associations like the ACD.