The risk that product prices will increasesuch as industrial materials and raw materials express market factors, as long as the red sea crisisin the midst of inflationary pressures while concern is also strong regarding speculation phenomena.
Already, imports from Asian countries as well as exports are recording a significant drop. For regarding 40 days now, several ships from Asia bound for Piraeus and the rest of the European ports, do not pass through the Suez Canal but go around Africa, as a result of which the costs for transporting products triple and the time doubles to reach the country’s largest port.
Costs expected to be passed on to product prices with market insiders estimating that there may be appreciations of even more than 10%.
However, everything will depend on the duration of the disturbance in the Red Sea. In any case, however, no shortages are expected on the market as, even with a delay, the products from Asia will reach Greece.
Tripling of transportation costs
The first signs of the turmoil in the Red Sea are already evident in the port of Piraeus. According to the president of the Piraeus Chamber of Commerce and Industry (EVEP), Vassilis Korkidis, the first fortnight of January container imports at the port of Piraeus have decreased by 45% and exports by 14% to 20%».
It is worth noting that, on a weekly basis, the port of Piraeus welcomed 50,000 containers from Asia. Mr. Korkidis emphasizes that the fare for the transportation of goods coming from Asia have tripled, specifically from 1,850 euros per day on December 12, when the Houthi attacks on the ships began, they have arrived at 6,000 euros today».
A blow to exports
Exports to Asian countries are made with particular difficulty while, according to its president SEVE-Association of Exporters, Simeon Diamantidis«exporters are hit twice because the cost of raw materials increases and at the same time the product transportation time doubles. We have problem in the fresh produce we export, such as kiwifruit, which cannot reach the Far East countries. Some contracts to sell kiwi to Korea have already been lost.”
Also, the president of SEVE-Association of Exporters reports that on a ship that was hit by the Houthis on December 18, there were Greek Kiwis, which arrived in Korea damaged and insurance companies do not insure the products due to the war and terrorist acts.
What products do we import from Asia?
According to data from SEVE-Exporters’ Association, only from China and India in 2022 we imported into our country products with a total value of approximately 9 billion euros. In particular, imports from China amounted to 7.9 billion euros and from India to approximately 1.1 billion euros.
The main products imported into our country from China are machinery, vehicles and various industrial products, chemicals, food and raw materials, while from India our country supplies industrial products, chemicals, petroleum products, machinery, vehicles and food.
Source: Daily
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