WELLINGTON: (Bernama-Xinhua) New Zealanders face sharply higher freight costs and months-long delivery delays as the Middle East conflict disrupts global supply chains, a freight company warned on Monday (March 9), reported Xinhua.
Local road transport carriers have increased fuel charges by more than 30 per cent, while international shipping lines have introduced "war risk surcharges" of up to 50 per cent on marine transit policies, according to Auckland-based freight company Rocket Freight.
"Every product that arrives on shelves will be affected," said Lisa Coleman, the company's director, in comments reported by Radio New Zealand (RNZ).
Many vessels are rerouting around southern Africa to avoid the Middle East, extending transit time by up to 40 days and driving up fuel costs, RNZ reported.
The crisis has pushed global oil prices higher, with Brent Crude rising 18 per cent to US$110 a barrel, prompting New Zealand drivers to queue at pumps over the weekend to fill tanks before the costs climb further.
Air Chathams' Chief Executive Duane Emeny said his airline faces 140,000 NZ dollars (about US$82,324) in extra monthly fuel costs and may cut flights, as larger carriers weigh similar reductions. - Bernama-Xinhua
