Industry insiders in Pakistan have reported a significant increase in export costs due to the current issues on the Red Sea route. The primary cause is maritime attacks by Yemen’s Iran-aligned Houthis, disrupting trade on a key East-West route that accounts for approximately 12% of global shipping traffic.
Shipping companies have been forced to take a lengthy detour around southern Africa, impacting perishables such as fruits and vegetables first. Waheed Ahmed, Patron in Chief of the All Pakistan Fruit & Vegetable Exporters Importers and Merchants Association (PFVA), said that shipments of mandarin (kinnows), a fruit with a significant market in Europe, have been affected. Other sectors are also feeling the impact.
Due to the detour via Cape of Good Hope instead of the Red Sea and Suez Canal, the distance has increased by around 3,500 kilometers. Ahmed added that the quality of the undelivered shipments could be compromised due to an increase in travel time by approximately 66%.
Source: brecorder.com