According to Israeli media channels, Iran's seizure of Israeli container ships is considered a blow to the trade route connecting Israel with countries in the east of the country. It is known that Israel's supply chain has been seriously damaged since the Israel-Hamas war broke out last October and has become even more serious since the Houthi rebels controlled the Red Sea area.

According to Professor Faisal Ahmed at FORE School of Management (India), the Strait of Hormuz is a vital point of the trade route for goods not only with Israel, but also with the entire Middle East region. Therefore, if the Iran-Israel conflict continues to escalate, the supply chain of goods along the Strait could be seriously disrupted. Professor Faisal Ahmed also warned: "If other countries in the region are also dragged into conflict, some industries such as oil and gas, aviation, hotels and small and medium-sized enterprises could be severely affected. . This will further push up logistics and insurance costs, leading to higher trade costs."

How is the supply chain of goods from Vietnam being affected by the conflict?

Currently, footwear and agricultural products are one of Vietnam's top export products in the Middle East, especially Israel. If the conflict continues to spread, negative impacts on production and business activities of Vietnamese enterprises will be inevitable. The reason is that the price of raw materials for production will increase and shipping costs will also increase, thereby, consumers around the world may tighten spending due to fears of instability.

Mr. Nguyen Van Khanh - Chairman of the City Leather and Footwear Association. Ho Chi Minh admitted that most businesses in the industry are still facing many difficulties with orders. According to Mr. Nguyen Van Khanh, up to 60% of the association's businesses have no orders from the second quarter to the end of this year. On the contrary, 40% of businesses with orders through Europe and the US may also face difficulties when maritime routes in the Middle East are congested.

The food industry also saw a decrease in orders as customers in the region were concerned about the unstable situation. Mr. Nguyen Van Thu - Chairman of the Board of Directors of G.C Food Joint Stock Company (GC Food), Vice Chairman of the Association for Food Transparency (AFT) shared "We currently export to the Middle East, although not much, but still keep the relationship. relationships with customers in this market to wait for recovery."

Solutions for Indian logistics businesses

Like Vietnam, India is also a country with developed bilateral trade with Israel and countries in the Middle East region. In the context of escalating Iran-Israel tensions, experts in the logistics industry in India are implementing drastic solutions to ensure goods are safe and delivered on schedule.

Regarding solutions to maritime problems, Mr. Jitendra Srivastava, CEO of Triton Logistics & Maritime Company, shared, "The Indian logistics industry is proactively protecting goods by diversifying transportation routes, strengthening security and use of technology.” Through an interview with BW Business World magazine, he also added: "Businesses need to prioritize resilience and adaptability."

Sharing the same opinion, Mr. Sandeep Chadha, CEO of real estate company Warehuster, emphasized: "Prioritizing supply chain diversification, risk management and diplomatic solutions is very important in the context of supply chain diversification, risk management and diplomatic solutions. increasing tensions. The logistics industry needs to increase security measures and apply advanced tracking technologies to ensure goods are transported safely."

Source: Công Thương