The ongoing conflict in the Middle East is significantly affecting global trade flows. According to the publication Heute, citing Stefan Paul, CEO of the leading logistics company Kühne + Nagel, the global air cargo market has currently lost about 18 percent of its capacity.
According to Paul’s warning, fresh food supplies in Dubai may last only about 10 days. The situation may become especially dangerous for fresh products such as fruits and vegetables, since many countries in the region are heavily dependent on imports.
If the conflict continues for a long time, according to logistics industry representatives, serious disruptions may occur in supply chains. In theory, transportation can be carried out through Saudi Arabia. However, the existing capabilities are not sufficient to cover the cargo of even one container ship. Such a ship usually carries up to 20,000 containers — covering such a volume with road transport is almost impossible.
In Europe, the impact of the war is still relatively limited. Mainly, energy prices have increased significantly and some disruptions in supply chains have been observed. In Dubai and other major trade centers, some shops are closed or operate with minimal staff, which negatively affects the business and tourism sectors.
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