Shippers, carriers to gain from Mid-East conflict

Westports Holdings Bhd executive chairman and group managing director Datuk Ruben Emir Gnanalingam.

PETALING JAYA: The rising geopolitical tension in the Middle East could provide some relief for the transportation and logistics sector, which benefits from higher charges, but could be inflationary when passed on to end-users.

Shipping lines and airlines look set to see gains as the conflict has led to higher sea-and-air freight rates, but analysts also warn disruption of shipping lanes will increase unit costs that will translate to higher prices for consumers and logistics providers.