Middle East clash is affecting global shipping: Reports

Bangladesh and the export-oriented apparel industry of Bangladesh have expressed concern about the Israel-Hamas war. The reports confirmed the block jam and cargo backlogs at the Israeli ports of Haifa and Ashdod and the closing of the smaller ports around the Gaza coastal enclave.

The report cited that if the conflicts spread beyond Israel and Gaza, then it will pose a threat to two major shipping checkpoints in the Middle East, Egypt’s Suez Canal and the Strait of Humus between Oman and Iran. The Suez Canal connects Europe, the Middle East and Asia and the Strait of Hormuz enables oil to follow from the only waterway for transport from the gulf to India.

It is said that any impact of the Suez Canal could lead to ships taking longer routes around Africa, increasing shipping costs from places like Europe to Asia.

Currently, global shipping rates have fallen after reaching a high point due to pent-up demand economies that have opened post-COVID pandemic. But now, the decline is due to lower demand and global economic slowdown, but this will help Bangladesh exporters and Importers due to the reduced cost of transportation.