The closure of the Strait of Hormuz is likely to lead to disruptions in the supply chain and commercial activity, with consequences, among others, including price increases, the Secretary General of the Cyprus Chamber of Commerce & Industry (CCCI), Philokypros Roussounides has said.
"Certainly, with the closure of the Strait of Hormuz, certain anomalies will be created in the supply chain and in the country's commercial activity and beyond," he said in statements to CNA, referring to possible delays, potential increases in costs and insurance, which are expected to skyrocket due to the war.
"It will be an additional cost and challenge for the supply chain," he said, mainly highlighting on-time delivery and increased costs.
The price increase is also being affected, he said, by the cost of oil, which rose by 10% today (Monday, 2 March). "They are talking about an increase of more than $100-120 per barrel," he said, estimating that this would have a corresponding negative impact on the economy.
"We are watching calmly, we do not want to panic the market and our partners," he said, adding that "certainly if the war continues for several weeks - something we hope for first for humanitarian reasons - there may be some problems. At this stage we call for calm and we are assessing the situation hour by hour."
Asked whether there are alternative trade routes in the event of shortages in the market, Roussounides said that "paper exercises are being conducted, there are alternatives. At this stage we will have to see what the situation is like and then evaluate or put the alternatives into effect."
He also mentioned that over the weekend, the CCCI had contacts with chambers of all the affected countries, so that, if there are Cypriot businesses or entrepreneurs facing problems there, "we can institutionally find a solution."
For now, he said, no such incidents have occurred, noting that the CCCI remains in constant contact with the chambers and is monitoring the situation.
(Source: CNA, InBusinessNews)
