BUSINESS GROUPS urged the government and industry to obtain stocks of oil and fertilizer during the two‑week Iran War ceasefire, during which cargo ships are expected to be allowed to transit the Strait of Hormuz.
In a statement late Wednesday, the Philippine Chamber of Commerce and Industry (PCCI) called the ceasefire “an opportunity for the Philippines to secure vital imports. We need a buffer stock for any possible disruptions,” PCCI President Ferdinand A. Ferrer said.
“We see this temporary opening as a critical to stabilizing global oil prices,” he also said.
Nearly 20% of the world’s oil and liquefied natural gas transit the Strait of Hormuz, which closed in March when fighting broke out in Iran following attacks by the US and Israel.
The reopening of the strait provides an opportunity for exporters and importers to stabilize logistics schedules, clear backlogs, and mitigate further cost escalations, Philippine Exporters Confederation, Inc. (Philexport) President Sergio R. Ortiz-Luis, Jr. said.
However, it will provide only temporary relief to exporters, he said in a statement on Thursday.
“The two-week reopening may help temper these pressures, but the organization cautions that volatility in fuel prices and insurance premiums for vessels transiting high-risk areas may persist beyond this period,” Philexport said.
Uncertainty about the accessibility of key trade routes underscores the vulnerability of global supply chains to disruption, Mr. Ortiz-Luis said. In particular, exporters are concerned that freight rates and delivery timelines remain unpredictable, directly impacting competitiveness, he noted.
“We urge government economic managers to take proactive steps to cushion the impact on exporters and the broader economy,” Mr. Ortiz-Luis said.
This includes monitoring fuel price movements; exploring targeted support for affected sectors; and boosting engagement with international partners for the continued flow of trade, he noted.
President Ferdinand R. Marcos, Jr. said on Wednesday that the Philippines will “take full advantage” of the two-week Middle East ceasefire, as it looks to increase fuel stocks and ease costs. —Beatriz Marie D. Cruz
