By Logan Kal-El M. Zapanta, March 1, 2026; Philippine Daily Inquirer
Manila, Philippines – An umbrella group of Philippine exporters on Sunday warned that the recent flare-up in tensions in the Middle East could drive up fuel, shipping and logistics costs, and potentially hurt the country’s export competitiveness if the conflict widens.
In a statement, the Philippine Exporters Confederation Inc. (Philexport) said a spike in oil prices and disruptions to air and shipping routes are among the immediate risks facing exporters as hostilities involving the United States, Israel, and Iran intensify.
The group noted that the Philippines, a net oil-importing economy, is particularly vulnerable to fuel price hikes, which could translate into increased production, transport and logistics costs for exporters.
“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,” the group said.
It also flagged potential risks to Philippine exports to the Middle East itself, which remains a key market for products such as food, construction materials and services.
“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,” it added.
As of Sunday morning, a total of 23 Philippine flights to and from the Middle East had been disrupted, according to the Civil Aviation Authority of the Philippines.
Philexport said recent airspace closures and flight suspensions in parts of the Gulf region highlight the vulnerability of logistics links connecting the Philippines to the Middle East.
Beyond logistics, exporters may also face weaker overseas demand as currency volatility and inflationary pressures weigh on consumer spending in energy-dependent economies in Asia and Europe.
To cushion the potential impact on the local economy, Philexport urged the government to closely monitor developments and adopt measures to protect exporters from possible disruptions.
These measures could include “ensuring stable fuel supply, reviewing logistics bottlenecks, supporting exporters with trade facilitation and financing, and strengthening market diversification efforts,” the group said.
“The organization likewise calls on exporters to review supply chains, hedge against cost volatility where possible, and explore alternative routes and markets,” it added.
