Rising Sea Freight Costs Put Pressure on Vietnam’s Cashew Exports

Geopolitical tensions in the Middle East are raising growing concerns about global maritime transportation and international trade. Key shipping routes such as the Red Sea, the Strait of Hormuz, and the Suez Canal face tension disruptions, which may lead to higher shipping costs in the near future. As oil prices and logistics expenses increase, exporting companies are under significant pressure regarding product pricing, delivery schedules, and profit margins.

For Vietnam, the Middle East is an important market for agricultural products. Dubai, in particular, serves as a major trade gateway for many commodities, especially cashew nuts. Vietnam is currently the world’s leading exporter of cashew kernels, with most shipments transported by sea to international markets. Therefore, the prolonged geopolitical conflicts in recent times have created considerable pressure on logistics costs and delivery planning for Vietnamese cashew exporters.

With rising maritime freight rates and the possibility of shipping schedule disruptions, cashew processing and exporting enterprises are facing multiple challenges, including higher transportation costs, increased cargo insurance fees, and the risk of delayed deliveries. These factors not only affect business profitability but may also reduce the competitiveness of Vietnamese cashews in the global market.

In addition to higher shipping costs, companies in the cashew industry must also consider other risks such as exchange rate fluctuations, rising insurance premiums due to higher-risk shipping zones, and potential congestion at transshipment ports. In some cases, cargo vessels may need to reroute or extend their voyages to avoid conflict zones, resulting in longer transit times and unexpected additional expenses.

Businesses should therefore proactively prepare contingency plans for shipments to Europe. If tensions are contained, freight rates may gradually ease in the second half of 2026. However, if the conflict escalates and persists, the impact on global trade including Vietnam’s export sector could be significant.