Goods is loaded and unloaded at Cai Mep Thi Vai Port, Ba Ria Vung Tau Province (Photo: Doan Manh Duong/ VNA)

Tran Thanh Hai, Deputy Director of the Foreign Trade Agency of the Ministry of Industry and Trade, said Red Sea tensions could increase the cost of shipping a container to Europe 4,000 USD, and the commodities hit hardest will be textiles, garments, footwear, timber products, and electronic devices.

Large shipping firms like Yang Ming Line, One, Evergreen Line, HMM, and Maersk have informed exporters of additional charges due to diverting routes away from the Red Sea and the Suez Canal. Exporters that use those routes need to take countermeasures to reduce losses, said Hai.

“Vietnam has a large volume of import and export goods, particularly exports to the European and US markets. Businesses need to take response measures, including negotiating extended delivery times if necessary, and are advised to buy insurance in anticipation of possible losses from prolonged transportation or unexpected incidents, and to prepare alternate transportation plans.”

The Ministry of Industry and Trade said it is coordinating with the Ministry of Transport to closely monitor the situation, and is recommending that businesses find other options, such as transporting goods by train or by air if it’s cost effective.