Some Ghanaian businesses operating in Israel have expressed concerned about the potential rise in freight charges due to the escalating conflict between Israel and Iran. With tensions between the two nations on the rise, shipping costs are expected to surge, posing significant challenges for businesses that rely heavily on imports and exports in the region.
Speaking to Joy Business, President of the Ghana Union of Traders Association (GUTA), Joesph Obeng said some members are worried about the impact of the war on rising costs on their of freight.
He disclosed that freight charges on the route are already indicating signs of instability, making it difficult for businesses to predict the future.
“The only problem we see is that it is going to affect us is the freight charges and the prolonged delivery of our goods because most of these shipping lines are going to reroute. If care is not also taken, the Strait of Hormuz is also going to be closed”.
The conflict has already triggered a 3% rise in global oil prices since markets reopened, following the U.S. strike on three Iranian nuclear facilities. To this end, Mr. Obeng is calling on the United Nations and world leaders to address the issue amicably to forestall major setback
“Most of the essential cargo comes from this corridor also, and that’s why we do not seek the escalation of this war, but rather pray to the leaders of the world, the UN and the United States, to find ways to bring a ceasefire and find a dialogue or political solution to this problem”, he pleaded.
Meanwhile, government is considering suspending the Price Stabilization and Recovery Levy as part of efforts to cushion consumers against a potential surge in global oil prices, should the Israel-Iran conflict escalate further.
Source: Joy News
