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12° Nicosia,
18 July, 2024
 
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Cypriot market braces for impact amidst Suez canal disruptions

Rising fees and extended shipping times

Newsroom

In a recent interview with KEBE Secretary General Marios Tsiakkis, concerns were raised about the inevitable impact on product prices in Cyprus due to increased fees for ships carrying containers.

The disruption in merchant ship routes from Asia, attributed to attacks by Houthi rebels in the Suez Canal area, is causing a ripple effect.

Tsiakkis explained to CBC that as ships opt for longer routes to avoid the troubled Suez Canal, costs are escalating, affecting cargo owners who now face higher fees.

Already witnessing an increase in 20-ton ($500) and 40-ton ($1,000) containers, Tsiakkis predicts a potential doubling of fees after 1/15/2024.

With Israel's ongoing war intentions, imported product prices in Cyprus are expected to rise. Tsiakkis emphasized that importers cannot absorb all the additional costs, placing the burden on consumers.

The delay from longer shipping routes may force importers to make larger orders, potentially requiring loans and further impacting product prices.

Tsiakkis revealed that the Cyprus Chamber of Commerce and Industry (CCCI) has received concerns from traders, particularly those involved in the trade of products from the Near East—cars, raw materials, electronics, toys, and clothing. Despite potential challenges, Tsiakkis expressed skepticism about the likelihood of government intervention, citing the absence of subsidies during the pandemic's supply chain disruptions.

[With information sourced from CNA]

TAGS
Cyprus  |  economy  |  fees  |  shipping  |  government

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