The Philippine Exporters Confederation (PhilExport) has urged its members toto review their supply chains, hedge against cost volatility where possible, and explore alternative routes and markets following the still developing security situation in the Middle East.
At the same time, PhilExport President Sergio Ortiz-Luis Jr. asked the government to closely monitor the evolving situation and adopt mitigating measures, including ensuring stable fuel supply, reviewing logistics bottlenecks, supporting exporters with trade facilitation and financing, and strengthening market diversification efforts.
Ortiz-Luis pointed out that Philippine exports to the Middle East itself remains an important market for food products, construction materials, and services.
“Airspace closures and transport disruptions—such as recent flight suspensions in the Gulf region—underscore the fragility of logistics links and the need for contingency planning by exporters,” he said.
At this critical time, PhilExport reiterates its call for peace and stability in the Middle East, recognizing that sustained geopolitical tensions pose serious risks not only to global security but also to the resilience of international trade and Philippine export growth.
PhilExport said that the situation has already heightened global uncertainty, disrupted airspace and logistics routes, and triggered volatility in energy markets. Oil prices have risen sharply amid fears of supply disruptions in key chokepoints such as the Strait of Hormuz—through which roughly 20 percent of global oil flows—and could surge further if the conflict widens or affects energy infrastructure. These developments risk increasing global inflation and weakening economic growth, with potential spillover effects on international trade and supply chains.
For the Philippines, a net oil-importing economy, higher fuel costs will directly raise production, transport, and logistics expenses for exporters, eroding price competitiveness in key markets.
Export sectors such as electronics, garments, processed food, and furniture may face increased shipping rates, insurance premiums, and longer transit times as shipping routes are rerouted or disrupted. Past tensions in the region have already led to higher freight and security surcharges and could again constrain trade flows and tourism, further dampening demand in major export destinations.
At the same time, currency volatility and inflationary pressures in global markets could reduce consumer demand abroad, particularly in energy-dependent economies in Asia and Europe.
