Vietnam Economic Times April, 06 2026

Dear readers,

The conflict in the Middle East, which began with an attack by the US and Israel on Iran on February 28, followed by Iran’s response in meeting force with force, shows no sign of ending and has already disrupted or hindered many global supply chains for more than a month, severely impacting the logistics operations of most economies, including Vietnam.

On March 5, the Islamic Revolutionary Guard Corps (IRGC) of Iran announced that it had exerted complete control over shipping through the Strait of Hormuz and confirmed it had attacked at least ten vessels since the conflict erupted, while imposing a travel ban on vessels believed to be associated with the US, Israel, and their allies. This announcement created a global “energy shock,” directly affecting logistics services.

The conflict in general and the limiting of oil flows through the Strait of Hormuz, where 20 per cent of the world’s oil and gas supply passes, has caused oil prices to rise sharply, reaching their highest levels since 2022, with Brent crude soaring to nearly $115 a barrel on the morning of March 28.

As a result, global logistics services in general, especially maritime transport services, have suffered from a twin negative impact, with input fuel prices remaining at unusually high levels and Asia-Europe transport routes being extended both in distance and time, due to having to go around the Cape of Good Hope at the tip of southern Africa, increasing transportation costs and prolonging delivery times.

The Middle East bottleneck is not just a regional issue and is triggering various “spillover effects,” disrupting the stable balance of the Asia-Europe supply chain. As both the Strait of Hormuz and the Red Sea and Suez Canal are under threat, congestion is readily found along many shipping routes linking Asian “workshops” with European consumer markets.

Logistics costs for maritime transport have become especially volatile. For example, the route from Hai Phong in Vietnam or Shanghai in China to Rotterdam in the Netherlands, if forced to pass around the Cape of Good Hope, will be extended by 3,500-4,000 nautical miles, equivalent to wasting 12-15 days adrift at sea, which incurs costs that are scarcely trivial.

Moreover, the longer shipping time also creates a shortage of empty containers, driving up container rental prices. Transshipment hubs face severe congestion, leading to increased warehousing costs as goods pile up, while war-risk insurance premiums have surged as a result.

Every economic sector has been negatively impacted by the Middle East conflict, but logistics services are among the sectors most heavily and visibly affected.

Our Cover Story in this edition therefore focuses on the overall nature of the “shock” from the Middle East conflict on Vietnam’s logistics operations, along with constructive solutions, including comments and recommendations from the Logistics Association and industry experts.

Warmest regards

Dr. CHU VAN LAM
CHAIRMAN OF THE EDITORIAL BOARD