2024-01-19T12:46:00+00:00
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/ Bloomberg reported on Friday that tension in the Red Sea portends an additional rise in food prices in Europe.
According to the US agency, food cargo ships have changed their course to a longer and more expensive route, going around the entire African continent to avoid the Red Sea, noting that shipping companies are facing the problem of not being able to deliver shipments before their expiration date, and that the chaos in the Red Sea has begun to cause disruptions in food supplies, threatening to inflate their prices.
It is noteworthy that the problems of transporting goods affect the imports and exports of the European Union, and according to estimates by the European Committee for Relations in European Industry and Agricultural Products, the situation in the Red Sea may affect the import and export of agricultural products in the European Union by the equivalent of 70 billion euros.
The cost of transporting a single container from China to Europe has risen from $1,000 to more than $4,000 due to tensions in the Red Sea, according to Kasper Rurad, maritime affairs adviser at the Dutch business association for trade and logistics, Evovendex.