Tensions between the US, Israel, and Iran, along with complex developments in the Middle East, are raising concerns about ripple effects on the global economy and international supply chains.
For Vietnam – a highly open economy heavily reliant on international trade – these geopolitical shifts could significantly impact import-export activities and logistics.
Logistics is the factor most strongly affected.
According to experts, the biggest impact of the current Middle East conflict lies not in market demand but primarily in... global transportation and logistics system.
Transport route through The Red Sea and the Suez CanalThe port, a vital gateway connecting Asia with Europe, is facing significant risks. Many shipping companies have been forced to change routes, diverting around it. Cape of Good Hope (South Africa) To ensure safety.
The change in route caused Shipping time will be extended by approximately 20–25 days.Previously, a shipment from Asia to Europe took approximately... 25 days, which can now be extended nearly 50 days.
Not only does it prolong the journey time, but transportation costs also increase significantly due to:
- Fuel costs are rising.
- War risk surcharge
- Adjusting the ship's schedule
At certain times, freight rates have increased 2–3 times compared to normal.
Which industries are most affected?
Items with a short shelf life include fresh agricultural products most noticeably affected.
For example, products such as bananas, dragon fruit They usually have a maximum shelf life of approximately 35 daysWhen shipping time extends up to... 50 daysThe risk of damage and losses for the business is very high.
In addition, delays in shipping can also pose financial risks, especially when Letter of credit (LC) has expired.This caused payment transactions to be stalled.
Opportunities still exist in the context of conflict.
Despite the complex geopolitical situation, global trade has not completely stalled. In fact, some product categories may even see increased demand.
In the context of conflict, essential goods and logistics products Items such as food, protective gear, tarpaulins, and raincoats may be in higher demand.
Furthermore, if businesses adjust their product strategies to suit market needs and manage risks effectively, Vietnamese exports can still maintain their growth momentum.
Businesses need to proactively develop logistics strategies.
During this sensitive period, experts recommend that businesses should:
- Prioritize delivery conditions. FOB to reduce transportation risks
- If used CIF or CNF, need to buy war risk insurance
- Select direct train, limiting transshipment to reduce transportation time
Changes in global supply chains are placing higher demands on the workforce. logistics management and import/export strategy of the business.
👉 Vietsun Logistics We closely monitor developments in the international transportation market, providing flexible and optimal logistics solutions to help Vietnamese businesses proactively respond to any fluctuations in global trade.
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