Business · Trade · 17 hrs ago
Conflict and longer shipping routes pressure Swiss coffee traders
The Swiss coffee trade is facing disruption from conflict and unsafe shipping routes.
Switzerland is a major hub, and members of its coffee traders' association handle more than half of the world's coffee.
Since the war against Iran began in late February, the shortest sea route between Asia and Europe has been practically closed.
Coffee shipments from Vietnam now go around the Cape of Good Hope, adding 20 days to the journey.
Traders are choosing longer routes rather than waiting for certainty, and roasters are keeping more beans in storage to guard against shortages.
This shift from efficiency to resilience can raise financing, insurance and transport costs.
Raw coffee prices reached record highs over the past two years and remain high for consumers, despite a forecast market surplus for 2025/2026; Nestlé expects lower bean prices in the second half, but says higher transport and energy costs may offset the fall.
Geopolitical conflict and unsafe shipping routes are putting pressure on coffee supply chains used by Swiss traders.
Vietnamese coffee shipments to Europe are taking a route around the Cape of Good Hope instead of using the Bab al-Mandab Strait and Suez Canal corridor.
The longer route adds 20 days to transport time.
At an industry forum in early October, coffee traders named war as their main concern and flexibility and alternative routes as their top priority.
Traders and roasters are placing greater emphasis on resilient supply chains and larger coffee stocks, despite higher costs.
- Who
- Swiss coffee traders and companies in the coffee supply chain, including Sucafina and Commodity Supplies AG.
- What
- Conflict and shipping disruptions are lengthening coffee delivery routes and putting pressure on supply chains.
- When
- The article was published on 2 November 2026; it says the war began at the end of February and the industry forum took place in early October.
- Where
- The Swiss coffee trade is affected, with Vietnamese coffee shipments to Europe taking a longer route around the Cape of Good Hope.
- Why
- The article links the pressure to conflict, unsafe shipping routes and rising oil prices, which have led shipping companies to reroute vessels and charge fuel surcharges.
This story does not have two clearly opposing sides.
The article says the war against Iran began, after which shipping companies rerouted vessels and introduced fuel surcharges.
Delegates at the coffee traders’ association’s annual forum named war as their main concern and flexibility and alternative routes as their top priority.
The International Coffee Organization reported the first coffee market surplus in five years.
- Longer route
- Vietnamese coffee shipments now travel around the Cape of Good Hope.
- Added transport time
- 20 days
- Association members’ trade
- More than half of the world’s coffee volume
- Forum priorities
- War was the main concern; flexibility and alternative routes were the top priority
- Nestlé price increases
- 4.7% of coffee-business sales growth in the first half of the year
What people are saying
It is better to transport the coffee by sea despite longer delivery times than simply to wait until there is certainty.
Five to ten years ago we optimised our supply chains for efficiency; currently we are gearing them towards resilience, and in the future their adaptability will be decisive.
Coffee traders must be prepared to make bold decisions quickly despite incomplete information.
offset by slightly higher transport and energy costs due to the conflict in the Middle East