The security situation in the Middle East continues to escalate significantly, particularly following military confrontations involving the United States, Israel, and Iran. These developments are directly impacting international maritime shipping operations and indirectly affecting plywood exports from Vietnam.
The Strait of Hormuz — one of the world’s most strategically critical waterways — serves as the primary gateway for transporting crude oil and natural gas from the Persian Gulf to global markets, accounting for approximately 20–25% of global oil and liquefied natural gas (LNG) supply.
Amid rising tensions and warnings of potential control or closure of this vital maritime corridor, several major global shipping lines have suspended or adjusted their operations through Hormuz.
Major Ocean Carriers Respond to Escalating Risks
• Maersk has officially suspended all vessel transits through the Strait of Hormuz until further notice to ensure the safety of vessels, crew, and cargo. The company has rerouted ships via the Cape of Good Hope and temporarily closed representative offices in Gulf countries including the UAE, Qatar, and Oman.
• MSC (Mediterranean Shipping Company) has halted new bookings to the Middle East and instructed vessels in the region to move to designated safe areas pending further instructions.
• Hapag-Lloyd announced that all its vessels will avoid the Hormuz route until security conditions improve.
• CMA CGM has suspended transits not only through Hormuz but also temporarily via the Suez Canal, advising ships in the region to seek secure shelter.
All carriers cited “maximum safety for vessels and crew” as the primary reason, as maritime passage through Hormuz has become highly unstable and increasingly high-risk.
Root Cause: Escalating Military Conflict
The escalation stems from military strikes involving the United States and Israel targeting Iran, followed by retaliatory actions and warnings issued by Iran prohibiting vessel transit through the Strait of Hormuz. Other strategic routes, including Bab el-Mandeb and the Suez Canal, have also been affected.
Consequently, many carriers are rerouting vessels around the Cape of Good Hope, significantly extending transit times and increasing operational costs. Several crude oil and LNG tankers have anchored offshore, suspended operations, or diverted routes. According to vessel tracking data, hundreds of ships have exited the Hormuz corridor due to safety concerns.
Longer Transit Times Result in:
• Higher fuel consumption
• Increased war-risk surcharges
• Rising marine insurance premiums (potential increases of 25–50%)
• Greater risk of shipment delays
Implications for Vietnam Plywood Exporters
For plywood exporters, these developments are particularly critical because:
• Major export markets such as the United States, the European Union, and the Middle East rely heavily on ocean freight.
• Freight rate volatility directly impacts profit margins and global competitiveness.
The disruption is not limited to shipping operations. It is exerting broad pressure across the entire global supply chain — from energy prices and transportation costs to cargo flow reliability. This domino effect may ultimately lead to higher production and export costs for plywood manufacturers in Vietnam.
The Secretary-General of the International Maritime Organization, Arsenio Dominguez, has urged shipping companies to exercise maximum caution and avoid high-risk areas until maritime security conditions improve significantly.
Industry analysts, including Amena Bakr (Kpler), have also warned that insurance premiums and freight costs are likely to continue rising, directly affecting global cargo transportation expenses.
The decision by major carriers such as Maersk, MSC, Hapag-Lloyd, and CMA CGM to suspend or adjust operations through the Strait of Hormuz underscores the severity of the current geopolitical situation. Beyond impacting shipping lines, the crisis is placing significant strain on global trade flows and supply chain stability.
In this uncertain environment, C&G VINA, alongside companies operating in logistics, international trade, and import-export sectors, is closely monitoring developments while proactively evaluating contingency strategies to mitigate business risks.
We firmly believe that during periods of market volatility, close cooperation and strong partnership are essential to maintaining sustainable growth.
Beyond being a plywood supplier, C&G VINA aspires to become a long-term strategic partner — working hand in hand with our customers to overcome challenges and seize opportunities in today’s increasingly complex global trade environment.