It is highly probable that New Zealand consumers will soon pay the price for shipping networks being disrupted by attacks in the Red Sea. As we know, in recent weeks there have been several attacks by Iran-backed Houthi rebels on container ships travelling through the busy cargo route. Nearly 15 percent of global seaborne trade passes through the Red Sea, which leads to the Suez Canal.
Now, New Zealand and 11 other countries have issued a joint statement calling for an immediate end to attacks on container ships in the Red Sea. According to Massey University supply chain lecturer Carel Bezuidenhout, the conflict meant that passing through the Red Sea was pushing up insurance costs for shipping companies. Bezuidenhout said all industries could be impacted if the conflict continues, but some sectors - like the kiwifruit industry - might be hit particularly hard. "When we start harvesting kiwifruit and we want to get those fruit to Europe as fast as possible, then it is going to become problematic for us to add another two weeks to get around the Cape of Good Hope."
A Zespri spokesperson said: "Our kiwifruit is shipped to Europe using the Panama Canal and isn't routed through the Red Sea. Each season we work closely with our longstanding shipping partners to deliver our fruit using a mix of charter and container vessels. We will continue to monitor the global shipping environment closely including the potential impact on other routes as we prepare for our first fruit to depart for Europe in mid-March."
Source: rnz.co.nz