Middle East Conflict Pushes Cambodia’s Transport Costs Up 25%

By Deth Leng

PHNOM PENH, May 8, 2026 (KPT) — Cambodia’s transportation and logistics costs have climbed by as much as 25 percent since early March, driven by surging global fuel prices linked to the prolonged conflict in the Middle East, industry representatives said Wednesday.

Sin Chanthy, vice president of the Cambodia Logistics Association and director‑general of Linehaul Express, told local media that service providers have been forced to adjust prices by between 20 and 25 percent since the escalation of fighting earlier this year.

“The increase mainly affects the transportation sector because fuel is a major operating cost,” Chanthy said, adding that companies have sought to ease the burden on importers and exporters by only partially passing on higher costs. 

“We are not increasing prices to make extra profit. In some cases, we did not raise prices at all, while for some clients the increase was only enough to offset fuel costs.”

He noted that higher fuel prices have dampened consumer and business spending worldwide, though global trade volumes have not significantly declined.

Despite rising transport expenses, Cambodia’s international trade expanded in the first quarter of 2026. Customs data show total trade reached more than US$16.9 billion in the first three months, up 17.2 percent from US$14.4 billion a year earlier.