2024-03-04 10:33:57
The crisis in ship traffic in the Red Sea coincides with the continuation of the Israeli war on the Gaza Strip. Obstructing the passage of ships facilitates the arrival of goods to their destination, which raises their prices and limits the volume of supply in the market.
In this context, the Director of the Food and Agriculture Organization of the United Nations (FAO) Office for Communication with Russia, Oleg Kobyakov, warned that the situation in Bab al-Mandab and the Red Sea will affect food trade and lead to higher prices. So far, “the cost of shipping ships that It runs on this road approximately four times, and the transport of goods has decreased by 30 percent.”
According to Kobyakov, “The largest shipping companies in the world refused to deliver goods through the Red Sea, which disrupted the existing logistical chains and forced the owners of the goods to use a circuitous route, where ships sailing between Asia and Europe go around the Cape of Good Hope, and the length of This road is 8,000 kilometers long and extends from 10 to 14 days.” He added that the cost of purchasing additional fuel to travel an additional distance “increases costs by an average of 15 percent. As a result, the price of products rises, and this leads to food price inflation and a decrease in the economic availability of food products to the final consumer.”
The threat to ship movement in the Red Sea and its impact on the availability of goods in the world exacerbates the challenges facing goods by obstructing their movement in other regions, such as the Black Sea, where movement is affected by the Russian-Ukrainian war, and the Panama Canal, whose water levels have decreased.
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