AssetID: 55546052
Headline: UNCAPTIONED: Shipping Costs Set To Rise As Iran Conflict Disrupts Global Trade
Caption: Shipping Costs Set To Rise As Iran Conflict Disrupts Global Trade. Consumers around the world could soon feel the financial impact of the Iran conflict, as rising shipping costs begin to filter through supply chains. Vincent Clerc, chief executive of the Danish shipping giant Maersk, says higher fuel and transport costs will ultimately be passed on to customers — and eventually to shoppers. Oil prices surged close to 120 dollars a barrel after the US-Israel war with Iran began, though they have since eased to around 87 dollars — still nearly 20 percent higher than before the conflict. Maersk, the world’s second-largest shipping company, plays a key role in transporting goods like clothing, electronics and toys across the globe. But the conflict has disrupted major trade routes. Traffic through the Strait of Hormuz — which normally carries about a fifth of the world’s oil — has largely stopped. At the same time, many shipping lines are avoiding the Red Sea because of security risks, forcing vessels to take longer routes around the Cape of Good Hope. Clerc says these detours are increasing freight costs by as much as 15 to 20 percent for some shipments — adding roughly 200 dollars to a standard shipping container. Other major shipping firms have already raised their prices, signalling further pressure on global supply chains. Instructions: THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
Keywords: Current Affairs & Politics,shipping costs,containers,consumers,feel,costs,rise,Strait of Hormutz,closed,Red Sea,Cape of Good Hope,shipping lines,war,Iran,unrest,strikes,Israel,United States,oil,clothing,energy,crisis,Maersk,Vincent Clerc
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