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International Container Terminal Services, Inc. chairman and president Enrique Razon Jr. says the Middle East conflict has so far only directly affected operations of their Iraq terminal but hopes the conflict ends soon so global trade can get back to its normal route
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Razon said they are “constantly working” with the government and other agencies around the world “to make sure that the Philippines has a continuous supply” of fuel
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Razon said there is so far no disruption on diesel deliveries, but noted prices are very high
International Container Terminal Services, Inc. (ICTSI) chairman and president Enrique Razon Jr. says the Middle East conflict so far has only directly affected operations of their Iraq terminal but hopes the war ends soon so global trade can get back to its normal route.
The “most direct effect to our performance is in our terminal in Umm Qasr in Iraq” but it has so far been offset by performances of all the other ICTSI terminals globally, Razon said during the company’s annual stockholders’ meeting on April 16.
ICTSI operates Basra Gateway Terminal in Umm Qasr, its only operation in the Middle East.
“But the longer the war takes to be settled, the larger the impact to the global economy. So, if the war [lasts] several more months, there will be a strong impact to the global economy and global trade. Hopefully, the warring parties can end this soon and, and we can get back to normal trading routes in the world,” he added.
On the supply of diesel in the Philippines, Razon said there is so far no disruption on deliveries, but noted that prices are very high.
“We’re not sure if this will be the case going forward, but the government has been able to mitigate this by being able to acquire crude and diesel and gasoline from the Russian Republic, so far, which the U.S. has lifted temporarily the sanctions on. The impact of the shortage with the closure of the Strait of Hormuz is mostly felt in Asia, unlike Latin America, which has big suppliers like the United States, Canada, Mexico, and Brazil. Asia is the most affected by the closure of the Strait of Hormuz,” he noted.
As the situation unfolds, Razon said they are “constantly working” with the government and other agencies throughout the world “to make sure that the Philippines has a continuous supply.”
As part of its long-term sustainability goals, ICTSI has deployed hybrid equipment in its terminals, including in the Philippines, to reduce fuel consumption significantly while cutting emissions.
Razon noted, however, that “until the war is over or settled, prices will remain high.”
He added that “this is why we have already implemented adjustments for tariffs and handling rates to make up for the differential in diesel and fuel prices throughout our terminals in the world,” he added.
In the Philippines though, any change in tariff will require approval from the concerned port authority.
ICTSI last year had its “best year ever” despite “an environment where disruption and instability in world trade were the dominant themes globally throughout the year,” Razon noted.
READ: ICTSI income grows 23% to over $1B as ports handle more cargo
The company reported a record high financial performance with net income attributable to equity holders of US$1.05 billion in 2025, up 23% year-on-year as its terminals handled 11% more containers to 14.501 million twenty-foot equivalent units.
More shipping lines have also included ICTSI terminals in their services, and several terminals’ contracts were extended.
“Our accomplishments only strengthen our desire for greater goals and accomplishments not only in 2026 but for years and years to come. Through resilience, innovation and drive we hope to maintain our leadership and set ourselves up for sustained success,” Razon said.—Roumina Pablo
