13 Mar
The Impact of the US-Israel vs Iran War, the Logistics Industry Prepares Mitigation
JAKARTA – Geopolitical tensions in the Middle East involving the United States, Israel, and Iran are starting to hit the global logistics industry. This conflict disrupts strategic shipping lanes in the Strait of Hormuz and the Red Sea, which has an impact on rising transportation costs as well as extended shipping times.
The CEO of HMS Group, Reef Man, stated that this situation is not just a geopolitical issue, but a challenge to business survival. Since the escalation escalated last Saturday, logistics companies have had to deal with the diversion of cargo ship routes through Cape Hope, South Africa.
"The diversion of the route to Tanjung Harapan increases transit time to more than two weeks. Currently, conditions are very unconducive, so almost all shipping stops export services to the Middle East and vice versa," said Reef Man in Jakarta, Saturday (7/3/2026).
Mitigation Strategy: Sea-Air Alternative Pathways
Reef explained that the Strait of Hormuz is the lifeblood of international trade because it is passed through by more than a quarter of the world's oil supply. The closure or blocking of this route automatically cuts off market access to Middle Eastern countries.
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To keep the flow of goods moving, HMS Group prepared the worst-case scenario by looking for alternative schemes, one of which was the Sea-Air method.
"We are looking for solutions that suit customer needs. For example, shipping by sea to Jeddah, then continued by land using trucks, or combined with air shipping," he added.
Expansion to Vietnam as a Strategic Hub
In the midst of global uncertainty, HMS Group is taking a strategic step by expanding into Vietnam. This step was taken as part of risk mitigation as well as optimization of the Southeast Asian market.
After successfully building a hub in Singapore, HMS Group is now targeting Vietnam because of its rapid manufacturing growth. Many of the world's major companies are shifting their investments to the country.
"We want to strengthen collaboration between Indonesia and Vietnam. The potential for export-import is huge, especially for industrial raw materials. In addition, Vietnam has very strong market access to the United States (US)," Reef explained.
Currently, HMS Group operates weekly direct open console LCL (Less than Container Load) services from 27 ports around the world, including major ports in China, Taiwan, and Ho Chi Minh, Vietnam.
Hope for de-escalation
Regarding concerns about the outbreak of the Third World War due to this escalation, Reef hopes that the situation can ease soon. However, the logistics world is required to remain adaptive as when facing the Covid-19 pandemic.
"We hope that this escalation will decrease and not spread. However, in terms of logistics, we have to continue to adapt. The closure of the Strait of Hormuz and the Red Sea is a real challenge that requires a rapid response so that global supply chains are not completely paralyzed."
