Serbian companies to pay 70% more for transport from Asia due to pirates

The main international carriers from the Red Sea diverted all their cargo ships via the Cape of Good Hope, which caused a ten-day delay and an increase in transport costs by about 70 percent.

“Like every European country, Serbia will also suffer from these disruptions which will increase operating costs of Serbian companies, which in turn, will lead to higher costs and additional fees,” Nebojša Đekić, Sales and Development Director at Cargo-Partner, says.

According to the statistical data, China is Serbia’s second-biggest trading partner, right after Germany, while crude oil from Iraq arrives in Serbia via this route.

Đekić reminds that the main shipping companies have officially declared force majeure, stopped navigation through the Bab al-Mandab Strait (a strait between Yemen on the Arabian Peninsula, Djibouti and Eritrea in the Horn of Africa.) and diverted cargo vessels from the Suez Canal to the route around the Cape of Good Hope.

According to Đekić, that decision may cause an increase in transit time from Asia to Europe by at least 10 days and approximately 15 or 20 days from Europe to Asia.

The reason for the diversion of transport is Yemen’s Houthi rebels who have been attacking and kidnapping cargo ships and their crew in the Bab al-Mandab Strait. The rebels claim that the attacks are carried out in support of the Palestinians as Israel and Hamas wage war.

The attacks have disrupted global trade flows, with shipping firms and oil companies saying they would avoid the Suez Canal, adding to freight costs and making voyages longer as vessels opt to circumnavigate the African continent instead.

(Bloomberg Adria, 11.01.2024)

Photo credits:  REUTERS/Khaled Abdullah/File Photo

This post is also available in: Italiano

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