The cost of shipping goods through several vital waterways worldwide surged sharply over the past month due to the war in the Middle East and climate change, raising concerns over higher consumer prices and highlighting the vulnerability of global supply chains.
The Financial Times, citing pricing agency Argus, reported that the combined impact of the conflict in the Middle East and lower water levels caused by prolonged droughts in Europe and Latin America had pushed shipping costs to record levels along major routes, including the Panama Canal, the Rhine River, the Red Sea and the Black Sea.
The newspaper noted that the continuing conflict in the Middle East, which has led to the near-total closure of the Strait of Hormuz to shipping, has had global repercussions, forcing vessels to reroute in search of alternative energy supplies.
Concerns over the vulnerability of vital waterways to global trade have also increased amid Iran’s influence over the Strait of Hormuz.
Tehran is currently negotiating with Oman over an agreement that could reportedly include vessels paying fees to transit the Strait.
