Christos Christoudias comments on fare increases and delays in the supply chain

Freight rates have increased by 25% due to Houthi pirate attacks on international shipping in the Red Sea, which is clearly affecting the supply chain, Christos Christoudias, the Managing Director of Christoudias Logistics has said.

Asked to comment, Christoudias told InBusinessNews that Cyprus is also clearly affected, as imports from Asian countries amount to around 20%, while, at the same time, shipping companies are constantly examining scenarios to find alternative solutions.

Asked to comment on whether there is a possibility that the current impact will exceed that of the pandemic, the Managing Director of Christoudias Logistics pointed out that there is currently no such issue, however, noting that it was still early days and we will know the real impact around the end of January-February.

"During the pandemic, the price of fares went up by 3-4 times. At the moment, the price has increased by €500 per TEU (Twenty Foot Equivalent Unit), an increase equal to 25% on the existing fares.

Therefore, the increases have not exceeded the level of the pandemic. But these are the prices that apply today, if they will rise further we cannot know yet. It also depends on the actions that will be taken for protection purposes," he pointed out.

Christoudias indicated, however, that due to the current circumstances, there are also delays in the supply chain.

"The time is also increasing, it takes an extra 20-25 days compared to before. And this, because the time the cargo stays in the sea is increasing", he explained.

Nevertheless, Christoudias noted that the specific problem did not cause product shortages, stressing that it is still too early to measure the consequences.

(Source: InBusinessNews)