Saturday, August 13, 2022
  • Contact Us
The Caribbean Post
Advertisement
  • Current News
    • Politics
    • Business
  • Tech News
  • Education
  • Entertainment
    • Travel
    • Lifestyle
  • Health
    • Recipes
  • World
    • Antigua
    • Aruba
    • Barbados
    • Barbuda
    • Dominica
    • Dominican Republic
    • Guadeloupe
    • Guyana
    • Haiti
    • Jamaica
    • St Lucia
    • Suriname
    • Tobago
    • Trinidad
No Result
View All Result
The Caribbean Post
  • Current News
    • Politics
    • Business
  • Tech News
  • Education
  • Entertainment
    • Travel
    • Lifestyle
  • Health
    • Recipes
  • World
    • Antigua
    • Aruba
    • Barbados
    • Barbuda
    • Dominica
    • Dominican Republic
    • Guadeloupe
    • Guyana
    • Haiti
    • Jamaica
    • St Lucia
    • Suriname
    • Tobago
    • Trinidad
No Result
View All Result
The Caribbean Post
No Result
View All Result
Home Business

War in Ukraine raises global shipping costs, stifles trade

Staff by Staff
June 29, 2022
in Business
0
2
SHARES
12
VIEWS
Share on FacebookShare on Twitter

GENEVA, Switzerland – Container shipping and global value chains have been disrupted and many countries have had to look further afield for suppliers of oil, gas and grain.

You might also like

St Lucia recommence banana exports to the UK, says minister Prospere

US Inflation Reduction Act recognizes the Canada-United States integrated supply chain, says minister Ng

APEC region’s growth to slow amid uncertainties and crises

The UN Conference on Trade and Development (UNCTAD) says the war in Ukraine is stifling trade and logistics of the country and the Black Sea region, increasing global vessel demand and the cost of shipping around the world.

In a report entitled “Maritime trade disrupted: The war in Ukraine and its effects on maritime trade logistics” published on 28 June, UNCTAD says Ukraine’s trading partners now have to turn to other countries for the commodities they import.

It attributes the shipping and transport hurdles in the Black Sea region to disruptions in regional logistics, the halting of port operations in Ukraine, the destruction of important infrastructure, trade restrictions, increased insurance costs and higher fuel prices.

Shipping distances have increased, along with transit times and costs.

“Grains are of particular concern given the leading role of the Russian Federation and Ukraine in agrifood markets, and its nexus to food security and poverty reduction,” the report says.

Soaring shipping costs raise food prices

Fewer grain shipments over longer distances are leading to higher food prices.

Grain prices and shipping costs have been on the rise since 2020, but the war in Ukraine has exacerbated this trend and reversed a temporary decline in shipping prices.

The report says between February and May 2022, the price paid for the transport of dry bulk goods such as grains increased by nearly 60 percent.

The accompanying increase of grain prices and freight rates would lead to a 3.7 percent increase in consumer food prices globally.

The Russian Federation is a giant in the global market for fuel and fertilizer, which are key inputs for farmers worldwide.

Disruptions in their supply may lead to lower grain yields and higher prices, with serious consequences for global food security, particularly in vulnerable and food-import-dependent economies.

Higher energy prices exacerbate challenges for shippers

The Russian Federation is also a leading oil and gas exporter.

“Confronted with trade restrictions and logistical challenges, the cost of oil and gas has increased as alternative sources of supply, often at more distant locations, are called upon,” the report says.

Daily rates for smaller-size tankers, which are key for regional oil trading in the Black Sea, Baltic Sea and Mediterranean Sea regions, have dramatically increased.

The higher energy costs have also led to higher marine bunker prices, raising shipping costs for all maritime transport sectors.

According to the report, by the end of May 2022, the global average price for very low sulphur fuel oil had increased by 64 percent since the start of the year.

Taken altogether, these increased costs imply higher prices for consumers and threaten to widen the poverty gap.

Policy actions needed to keep global trade flowing

UNCTAD calls for urgent action to open Ukraine’s ports to international shipping so the country’s grain can reach overseas markets, at lower shipping costs.

The organization says continued collaboration is needed among vessel flag states, port states and other actors in the shipping industry to maintain all necessary services, including bunkering supplies, health services for sailors and certification of regulatory compliance.

This will help to keep to a minimum the negative impacts on costs, insurance premiums and operations.

UNCTAD also says alternative ways of transport must be pursued and that easing transit and the movement of transport workers – even temporarily – can reduce the pressure on cross-border trade and transit.

Also, UNCTAD calls for more investment in transport services and trade and transit facilitation.

And more international support for developing countries, especially the most vulnerable economies, as the war in Ukraine adds to the challenges posed by the COVID-19 pandemic and the climate crisis.

Credit: Source link

Tags: costsglobalraisesshippingstiflestradeUkraineWar
Previous Post

TUDOR LAID TO REST | Barbados Advocate

Next Post

COVID-19 drives global surge in use of digital payments

Staff

Staff

Related Posts

Business

St Lucia recommence banana exports to the UK, says minister Prospere

by Staff
August 13, 2022
Business

US Inflation Reduction Act recognizes the Canada-United States integrated supply chain, says minister Ng

by Staff
August 13, 2022
Business

APEC region’s growth to slow amid uncertainties and crises

by Staff
August 13, 2022
Business

Germany is on track to meeting its gas saving target

by Staff
August 12, 2022
Business

Blockchain reaction: The high cost of unregulated crypto

by Staff
August 12, 2022
Next Post

COVID-19 drives global surge in use of digital payments

Recommended

Shalini Samaroo to lead Trinidad and Tobago at U-19 cricket tourney

July 1, 2022

Dominica’s future housing programme: A path to generational wealth

July 25, 2022

Categories

  • Business (148)
  • Current News (73)
  • Education (15)
  • Entertainment (47)
    • Lifestyle (20)
    • Travel (8)
  • Health (77)
    • Recipes (54)
  • Politics (19)
  • Tech News (11)
  • World (1,071)
    • Antigua (28)
    • Aruba (30)
    • Barbados (28)
    • Barbuda (28)
    • Dominica (29)
    • Dominican Republic (29)
    • Guadeloupe (184)
    • Guyana (200)
    • Haiti (28)
    • Jamaica (28)
    • St Lucia (27)
    • Suriname (28)
    • Tobago (201)
    • Trinidad (202)

Don't miss it

Tobago

Man gunned down at Charlieville auto shop

August 13, 2022
Guyana

Chinese Government donates to Disaster Relief in Guyana

August 13, 2022
Trinidad

Update: One dead, two injured after shooting outside Residence

August 13, 2022
Tobago

Caribbean Creators: Kyle Phillips | Loop Trinidad & Tobago

August 13, 2022
Trinidad

Missing mom, children at ‘safe location’

August 13, 2022
Guyana

Stabbing incident leaves one dead – News Room Guyana

August 13, 2022
The Caribbean Post

This is an online news portal that aims to share latest news about Africa, Caribbean and other countries of Africa with respect to business, entertainment, breaking updates and stuff like that. Feel free to get in touch!

Categories

  • Business
  • Current News
  • Education
  • Entertainment
    • Lifestyle
    • Travel
  • Health
    • Recipes
  • Politics
  • Tech News
  • World
    • Antigua
    • Aruba
    • Barbados
    • Barbuda
    • Dominica
    • Dominican Republic
    • Guadeloupe
    • Guyana
    • Haiti
    • Jamaica
    • St Lucia
    • Suriname
    • Tobago
    • Trinidad

Browse by Tag

Antigua Aruba Barbados Barbuda Bites Business Caribbean cases Concacaf COVID COVID19 Dominica Dominican food France French Games global growth Guadeloupe Guyana Haiti Immaculate Jamaica Local Lucia man Market Minister National News oil police Republic Room Suriname team Tobago Tobagos Trinidad weather West win women World

Recent News

Man gunned down at Charlieville auto shop

August 13, 2022

Chinese Government donates to Disaster Relief in Guyana

August 13, 2022

Update: One dead, two injured after shooting outside Residence

August 13, 2022

Caribbean Creators: Kyle Phillips | Loop Trinidad & Tobago

August 13, 2022

2022© Design by CodingBite | Powered by LuxamaMedia.

No Result
View All Result
  • Current News
    • Politics
    • Business
  • Tech News
  • Education
  • Entertainment
    • Travel
    • Lifestyle
  • Health
    • Recipes
  • World
    • Antigua
    • Aruba
    • Barbados
    • Barbuda
    • Dominica
    • Dominican Republic
    • Guadeloupe
    • Guyana
    • Haiti
    • Jamaica
    • St Lucia
    • Suriname
    • Tobago
    • Trinidad

2022© Design by CodingBite | Powered by LuxamaMedia.