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Middle East conflict and impacts on shrimp export market 

 Tuesday, March 17,2026

AsemconnectVietnam - The Middle East is one of the important market regions for Vietnamese seafood, with shrimp being a notable export item.

However, military tensions in the region since the beginning of 2026 are raising concerns about the risk of disruption to trade, logistics, and the global seafood supply chain. In this context, Vietnamese shrimp exports to the Middle East are also experiencing certain impacts, clearly reflecting the fluctuations in the global shrimp market.
The Middle East – a potential market for Vietnamese shrimp
For many years, the Middle East has been considered one of the seafood consumption markets with relatively stable growth rates. According to statistics, Vietnam's seafood exports to the Middle East have increased from approximately US$197.7 million in 2020 to over US$401.1 million in 2025, indicating expanding consumer demand.
Shrimp is one of the key products in Vietnam's seafood exports to the Middle East. Vietnam's shrimp exports to the region reached approximately US$41.6 million in 2020, projected to increase to US$54.5 million in 2025, reflecting the market's stable growth trend. Shrimp accounts for about 14% of Vietnam's total seafood exports to the Middle East.
In terms of product structure, whiteleg shrimp dominated with US$37.7 million in 2025, equivalent to approximately 69% of the total export value, demonstrating its status as a key product in this market. Black tiger shrimp ranked second with a value of US$13.8 million, accounting for approximately 25%, while other shrimp varieties accounted for only a small proportion. In terms of product specifications, live/fresh/frozen shrimp (HS03) still accounts for the majority of export value, especially raw whiteleg shrimp and black tiger shrimp, while the processed shrimp group (HS16) has shown a gradual increase in recent years. This indicates that the Middle East remains a relatively stable shrimp market, but there is still significant room for expansion in processed and value-added shrimp products.
The demand for shrimp in the Middle East mainly comes from high-income countries such as the UAE, Saudi Arabia, Qatar, and Kuwait. These are markets with strong food service and tourism industries, where seafood – especially shrimp – is a popular protein source in restaurants, hotels, and modern retail systems.
Furthermore, the Middle East is also a significant consumer market for Vietnamese frozen shrimp, processed shrimp, and value-added shrimp products.
Middle East tensions and their impact on logistics
Recent geopolitical tensions in the Middle East are creating significant disruptions to the global logistics system. The region lies on strategic shipping routes, particularly the Strait of Hormuz and the Suez Canal – crucial transit points for world trade.
As conflicts escalate, many international shipping companies are beginning to restrict or adjust their routes through the risky area. In some cases, ships have to detour around Africa, extending transit times by 10 to 20 days compared to normal. This creates significant difficulties for frozen seafood products, which rely heavily on a fast and stable supply chain.
Along with this, the cost of refrigerated container shipping is trending upwards. Some businesses report that shipping costs could increase by approximately $2,000–$4,000 per container, not including risk and fuel surcharges. Rising oil prices due to regional tensions are also driving up logistics and production costs in the seafood supply chain.
In some cases, export shipments to the Middle East have had to change their logistics plans. One business reported that customers in Israel have shifted their receiving port to Egypt to continue transportation by road, in order to avoid risks on sea routes.
Impacts on Vietnamese shrimp exports
Although shrimp consumption demand in the Middle East remains stable, deliveries to the region are facing certain obstacles due to transportation restrictions. Some businesses report a temporary slowdown in exports to the Middle East due to difficulties in arranging safe shipping.
However, orders from this region have generally not been canceled, as demand for food – especially seafood – remains quite high. The main challenges lie in organizing transportation and controlling logistics costs.
For other markets such as the US or Europe, the impact of the Middle East conflict is primarily manifested in extended shipping times and increased transportation costs. Some shipping routes have to detour around Africa to avoid high-risk areas, extending delivery times by approximately 7–10 days.
If the tensions persist, sea freight costs could increase sharply, similar to the period during the COVID-19 pandemic when container rates increased many times over. This could significantly impact the profit margins of shrimp exporting businesses.
Impacts on the global shrimp market
Not only does it affect Vietnam's exports, tensions in the Middle East could also impact the global shrimp market through various channels.
First, rising oil prices could increase the costs of aquaculture and shrimp farming, as well as the cost of transporting shrimp between major production and consumption regions such as Asia, Europe, and North America.
In addition, disruptions to key shipping routes could increase logistics costs and prolong delivery times, thereby affecting the global shrimp trade flow.
In the context of rising logistics costs, importers may be more cautious in signing contracts or adjusting purchasing plans, especially during a period when the global shrimp market is still recovering from the demand downturn in 2023.
However, on another aspect, geopolitical instability can sometimes boost demand for frozen or long-lasting food products, including shrimp. Businesses need to proactively monitor market developments.
Currently, the direct impact of the Middle East conflict on Vietnamese shrimp exports is primarily in the areas of logistics and transportation costs. However, if the situation persists or spreads, these fluctuations could have a deeper impact on the global seafood supply chain.
In this context, shrimp exporting businesses need to closely monitor geopolitical developments and proactively work with import partners and shipping lines to adjust delivery plans as needed.
In the long term, diversifying export markets and consolidating stable markets will play a crucial role in mitigating risks from geopolitical and global logistics fluctuations.
While the Middle East remains a potential market for Vietnamese shrimp, current developments also highlight the importance of building a flexible market strategy to adapt to the increasingly volatile international trade landscape.
CK
Source: VITIC/vasep.com.vn

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