FAO: Chartering ship costs in the Red Sea increased 4 times

Oleg Kobyakov, Director of the Liaison Office with Russia at the Food and Agriculture Organization of the United Nations (FAO), said that the blockade imposed by the Houthis on the waterways through the Bab al-Mandab Strait and the Red Sea is negatively affecting global food trade, leading to higher prices, according to TASS. Russian.

Kobyakov said, “The blockade imposed by the Houthis on the Bab al-Mandab Strait and the Red Sea has a negative impact on global food trade, as the cost of chartering a ship to travel on this route has almost quadrupled, while the movement of goods has decreased by 30%, at a time when shipping companies refuse Delivery of goods across the Red Sea.

“This has disrupted existing supply chains, and cargo owners were forced to use a long route, sending ships around the Cape of Good Hope to travel between Asia and Europe,” Kobyakov added. “This route is 8,000 kilometers longer and takes an additional 10 to 14 days. The necessary cost also increases.” To purchase additional fuel, expenses increase by 15%.

He added, “As a result, food prices rise and the affordability of food products decreases.”