BAROMETER. The blockage of the Strait of Hormuz is dragging on with major consequences for the organisation and cost of container transport worldwide. The increase in contaier freight rates has been limited, however, by low demand.
The continuation of the conflict in the Persian Gulf, which is exemplified by the blockage in the Strait of Hormuz, is becoming increasingly difficult to bear, with serious consequences for seafarers, shippers and the world economy, which is having to pay an increasingly heavy price with each day that goes by without a solution.
Impact of Middle East conflict
We have gone past the stage at which it was possible to hope that the situation could return to normal in a few months after a catch-up period. Whatever happens in the next few weeks, the marks left by the crisis will be clear to see over the financial year as a whole via company financial results and inflation. Moreover, the conflict will lead inevitably to shortages of oil products within a few weeks or months, depending on the product concerned. The Persian Gulf countries account for 20% of worldwide production of oil products and 30% of aviation fuel output.
- Traffic in the Strait of Hormuz still paralysed
A good hundred container ships were still immobilised in the Persian Gulf in April. Efforts to escape the blockade have not been conclusive. The shipping companies did not have access to...
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