BANGKOK: Thanakorn Kasetsuwan, chairman of the Thai National Shippers’ Council (TNSC), says that escalating tensions in the Middle East between Iran, Israel and the United States are severely affecting supply chains and the mechanisms of global trade.
The crisis has had an immediate impact on maritime traffic in the Persian Gulf.
The latest information indicates that a large number of cargo vessels have been forced to drop anchor and stop moving to assess the situation.
Shipping lines have had to avoid the Strait of Hormuz and other high-risk areas, switching to routes around the African continent via the Cape of Good Hope.
This has pushed shipping costs up sharply, with freight rates effectively doubling. Estimates show the cost for a 40-foot container has risen from US$3,500 per container to US$7,000 per container.
Exporters must also shoulder additional war-risk surcharges and higher fuel fees, reflecting the longer sailing distances.
Thai exports to the Middle East account for about 5% of Thailand’s total global exports, worth around 400 billion baht per year. — The Nation/ANN
