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Air freight rates may go up Israel today

2021-03-28T20:37:30.329Z

| economy According to the CEO of the "US-SHOPS" group, the more the Suez Canal remains blocked, the greater the chance that the increase in the prices of various goods will be passed on to the consumer. "" This is a global crisis. " The blockade of the ship "Aber Gibbon" in the Suez Canal in Egypt is expected to affect import supplies and even personal imports worldwide, as well as raising the fear of sho



According to the CEO of the "US-SHOPS" group, the more the Suez Canal remains blocked, the greater the chance that the increase in the prices of various goods will be passed on to the consumer. "" This is a global crisis. "

The blockade of the ship "Aber Gibbon" in the Suez Canal in Egypt is expected to affect import supplies and even personal imports worldwide, as well as raising the fear of shortages of various goods and rising container prices that will affect the costs of the products we purchase.

Documentation of the ship's rescue attempts, Thursday // Photo: Reuters

Yaron Ben Eli, CEO of the US-SHOPS Group, told Israel Today that "currently there is no impact on air shipments, but I expect it to have an impact in the end, for several reasons.

It is still unclear when this crisis will end and when the ships will be released.

It's like a traffic jam in Ayalon, so we have to wait for it to be released. "

He said, "The containers are like crates that go around the world. It is not necessarily related to one geographical location or another. There are tens of thousands of containers stuck, and the lack of them increases their cost. It is a global crisis."

Ben Eli said that his company is one of the units that makes maritime shipments, and that he has not yet been notified of a delay in shipments or their increase in prices, but that he does not know where the situation may go.

"We are still getting the containers, but it all depends on how long this story will last. It could be that already now there are suppliers who see the situation and take the shipments from the sea to the air," he said.

"Container prices have gone up because of the corona crisis, and I expect that if the issue is not resolved soon - prices will go up again. It could reach tens and even hundreds of percent per container, which will cost the products because in the end the importer burdens the cost to the consumer."

Ben Eli also said that the consequences may not only be for the sea shipments, but also for the air shipments.

"They may now ship products that are not large to the air. The demand for air will go up, and then the price will also go up. It's all a chain reaction. This can make a serious dizziness and affect the delay and rise in shipping prices from anywhere in the world," he added.

The ship blocks the main trade route between Europe and Asia, with an average of 50 cargo ships passing through it every day, carrying about 12% of the world's maritime trade.

According to recent reports, more than 320 cargo ships and at least seven oil tankers were stranded in the canal and changed course due to the blockage.

The volume of daily trade passing through the Suez Canal is estimated at more than $ 12.5 billion, according to shipping magazine Lloyd's List.

According to the Bloomberg agency, a detour of the Suez Canal via Cape of Good Hope in South Africa adds to a cargo journey from the Middle East to Europe close to ten thousand kilometers (more than the distance between Israel and New York by air) and an additional cost of about $ 300,000.

The German insurance company Allianz estimates that the weekly damage caused by the closure in Suez could reach up to $ 10 billion, affecting up to 0.4 percentage points in the annual growth of world trade.

Oil had already risen 3.7 percent and jumped to more than $ 60 a barrel on Friday, after it was reported that at least 30 oil tankers were stuck in the canal.

Source: israelhayom

All news articles on 2021-03-28

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