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Shipping costs soar as Ukraine war hits maritime trade: UNCTAD
The war in Ukraine is one of the major issues affecting international maritime transport, compounding other challenges such as the Covid-19 pandemic and port congestion, and contributing hugely to higher shipping costs, says a report by the United Nations Conference on Trade and Development (UNCTAD).
For instance, the Russian Federation and Ukraine are prominent players in agrifood markets, including animal feed.
Gokaran Singh Pawar, General Manager-Sales of edible oil company Sunpure, says prices of edible oil shot up in the past few months due to multiple global factors, including the ongoing Ukraine war, resulting in supply chain disruption.
Not just oil, but other products have been impacted too, says the UNCTAD report.
Global shipments of fertiliser and its inputs such as potash are projected to drop by 7 percent in 2022.
Grain prices and shipping costs have risen since 2020, but the war has exacerbated this trend and reversed a temporary decline.
The Russian Federation is also a leading oil and gas exporter. In the face of trade restrictions and logistical challenges, the cost of oil and gas has increased as they have to be sourced from other places that are far away.
Higher energy costs have led to higher marine bunker prices, thereby increasing the shipping costs for all sectors.
If global trade is to flow more smoothly, Ukrainian ports should be opened up to international shipping.
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” You can therefore be sure of an increased momentum in our resolve to sustain maritime safety, security, environmental protection and adherence to relevant conventions and protocols with renewed vigour.”
The DG concluded by acknowledging the support of President Bola Ahmed Tinubu, Adegboyega Oyetola, Minister of Marine and Blue Economy, industry stakeholders, management and staff of NIMASA as well as all Nigerians and wished everyone a Merry Christmas and a prosperous New Year.
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