Sector Insight

Tensions in the Red Sea have raised concerns about the risk of global supply chain disruptions. 

• Pressures mount on the maritime transport industry:In the short term, we believe that the situation in the Red Sea will address the oversupply of containers. In the medium term, if the disruption persists, this will have a significant impact on the supply-demand balance of container shipping, with the risk of pushing up container freight rates.  
• Domino effect on the energy market: We assess that any disruption to oil transportation through the Red Sea could lead to higher oil prices. This is due to limited supply and concerns about escalating tensions in the Middle East.
• Red Sea’s mixed impact on Vietnamese import-export and oil and gas enterprises