Exporters adjust amid logistics strife

Conflict creates ripple effects for everyday life in Vietnam

- By Nguyen Thu

Escalating instability in the Middle East is disrupting shipping routes and pushing up freight and fuel costs, forcing logistics firms and exporters to adjust operations as global supply chains face mounting pressure.

According to feedback from exporters submitted last week to the Ministry of Industry and Trade, the conflict is already affecting international logistics networks, particularly maritime transport. Some shipping routes have been forced to divert or extend voyages, while several shipping lines have cancelled or temporarily suspended services to certain ports.

The changes are beginning to translate into higher logistics costs. Companies say shipping lines have started imposing emergency surcharges and additional fuel-related fees, while volatile global oil prices are pushing up transport and input costs across supply chains.

Several major carriers operating routes between Vietnam and the Middle East including Maersk, Wan Hai Lines, Hapag-Lloyd, China United Lines, and Regional Container Lines.

Some lines have also introduced emergency conflict surcharges.

CMA CGM Group and China United Lines, for example, have imposed additional charges of around $2,000 for a 20-foot container, $3,000 for a 40-foot high-cube container, and up to $4,000 for refrigerated or specialised equipment.

Freight rates have surged particularly sharply on Middle East routes. Shipping costs from Ho Chi Minh City to Dubai in the United Arab Emirates have reportedly jumped by as much as 388 per cent, reaching $7,385 per FEU (40-foot equivalent unit).

Ngo Si Hoai, vice chairman of the Vietnam Timber and Forest Product Association, said exporters in the wood industry have already received notifications of higher freight charges.