Concern over price hikes due to shipping disruptions
Over the past few weeks, supplier discussions with their partners have been dominated by developments in the Red Sea, with Houthi attacks on merchant ships and their impact on global trade. Already, from the information shared, it appears that further increases in goods arriving from Asian markets are largely inevitable. A large number of shipping companies are changing their routes, avoiding Suez and doubling the time to transport goods. This entails additional transport fuel needs, and therefore higher costs. Within a month, freight rates for containers have doubled. Meanwhile, after the escalation of the conflict in the Red Sea and the involvement of the US and Britain, the prices of Brent oil registered an increase of 2.3% and US crude oil 2.5%. At the level of the Cypriot market there is unrest, with concerns being expressed officially by retail trade professionals about skyrocketing the cost of containers and also from the construction sector about increases in building materials.
Read the report by Maria Herakleous in the printed edition of “K”.
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