Vietnam Freight Costs Spike 30% Amid Iran War

Brands sourcing from Vietnam face rising freight costs and delays as the conflict increases pressure on pricing and inventory.

Apr. 6, 2026 at 9:48pm

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A photorealistic studio still life featuring a stack of shipping containers, a compass, and a model oil tanker ship, arranged elegantly on a clean, monochromatic background to symbolize the global trade disruptions caused by the Iran conflict.As the Iran war disrupts global shipping routes, brands reliant on Vietnamese manufacturing face rising freight costs and inventory challenges.Los Angeles Today

The war in Iran is having far-reaching consequences, including a roughly 30% uptick in container prices and extended lead times of 3-4 weeks for brands that source goods from Vietnam. Escalating oil prices have forced Vietnam's airlines to tighten up capacity, while port congestion and a shortage of empty containers have also contributed to the supply chain disruptions.

Why it matters

Vietnam is a major manufacturing hub for many global brands, so the supply chain issues caused by the Iran war could soon impact store shelves and inventory levels. The rising freight costs and delays pose challenges for direct-to-consumer brands like Birchbury that rely on timely shipments from Vietnam.

The details

Birchbury, a Los Angeles-based direct-to-consumer footwear brand, has seen container prices rise from $3,500-$4,000 to $4,500-$5,200, while lead times have increased by 3-4 weeks. The company is considering raising prices to offset the higher costs. Escalating oil prices have forced Vietnam's airlines to tighten capacity, and port congestion combined with a shortage of empty containers have also contributed to the supply chain disruptions.

  • The Iran war is now in its sixth week.
  • Freight costs have risen by roughly 30% since the start of the conflict.

The players

Birchbury

A Los Angeles-based direct-to-consumer online minimalist footwear brand that manufactures exclusively in Vietnam.

Matthew Tran

The founder of Birchbury.

CMA CGM

A French ocean carrier that secured assurances its ships stuck in the Gulf would be able to voyage through the Strait of Hormuz unharmed.

Cosco Shipping

A Chinese-owned ocean carrier that was the first major carrier to sail through the Strait of Hormuz during the conflict.

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What they’re saying

“Before the Iran war, we were paying roughly $3,500 to $4,000 per container out of Vietnam. Now we're paying closer to $4,500 to $5,200 and our freight forwarder is already saying that it's likely to climb further.”

— Matthew Tran, Founder, Birchbury

“On top of that, lead times have increased by three to four weeks, so right now we're already preparing for a potential inventory depletion.”

— Matthew Tran, Founder, Birchbury

What’s next

The U.S. has doubled its maritime insurance guarantee for vessels transiting through the Strait of Hormuz, increasing the backstop figure to $40 billion. The U.S. Development Finance Corp. tasked with implementing the program is expected to announce the opening of the application portal soon.

The takeaway

The Iran war is causing significant supply chain disruptions for brands that source goods from Vietnam, with rising freight costs and extended lead times that could soon impact store shelves and inventory levels. This highlights the vulnerability of global supply chains to geopolitical conflicts and the need for companies to diversify their sourcing and logistics strategies.