HCMC – Businesses have been advised to take proactive measures to reduce logistics and trade risks as tensions escalate in the Middle East.
In Document No. 229/XNK-TLH, the Agency of Foreign Trade under the Ministry of Industry and Trade recommended that industry associations and companies closely monitor developments and adjust production, import-export and transport plans to limit disruptions.
The ministry reported that from February 28, 2026, the U.S.-Israel war on Iran had sharply increased tensions in the Middle East. Within 24–48 hours, the parties involved have signaled preparations for a prolonged conflict. Ongoing attacks and counterattacks have created high risks for international transport, trade and global supply chains.
Global oil and fuel prices may rise in the coming period, pushing up logistics costs, particularly for sea and air freight, the ministry projected. Several countries in the region have restricted or closed airspace for security reasons, forcing flight rerouting, longer transit times and higher expenses.
Shipping through the Strait of Hormuz, a key route for global energy trade, has nearly stalled following the airstrikes. Security warnings from Iran have led many shipping lines to adjust routes, significantly increasing delivery times and costs.
To mitigate risks, companies have been urged to diversify sources of raw materials and export markets to reduce reliance on Israel, Iran and the broader Middle East. They have also been encouraged to develop long-term contingency plans for similar geopolitical disruptions.
When negotiating and signing contracts, businesses should review clauses related to logistics, delivery, insurance and force majeure to ensure appropriate risk-sharing and compensation mechanisms. Adequate cargo insurance is recommended to limit potential losses.
Firms have been further advised to regularly update information on freight rates, transport costs and surcharges, and coordinate with relevant authorities to respond promptly to market fluctuations.
