War in the Red Sea, another economic blow for Greek producers

Market & Price Trends
Innovation & Technology
Published Feb 6, 2024

Tridge summary

The ongoing conflict in Yemen is predicted to negatively affect Greek exports of agricultural products, especially fruits and vegetables, due to a rise in transportation costs and alterations in shipping routes. The war has caused a shift in shipping data for transport via the Red Sea and the Suez Canal, compelling ships to circumnavigate Africa instead of passing through the high-risk area. This change has quadrupled transportation costs and lengthened delivery times. Furthermore, the conflict may cause an oversupply in the European market as Egypt and Morocco, who typically export a large portion of their citrus production to Asia through the Suez Canal, may now divert their exports to the European market.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Just as the war in Ukraine affected Greek exports of agricultural products, the war in Yemen will also affect them. We remind you that even before the Ukrainian war, from 2014, with the economic measures taken by the Commission against the Russians, we had the Russian embargo, the economic effects of which were felt very well in their income by Greek fruit and vegetable producers (peaches, grapes, strawberries, etc.). Israel's invasion of Gaza brought drone and missile attacks from Yemen-based Houthi fighters. This has had the effect of changing shipping data for transport through the Red Sea and the Suez Canal, through which about 10% of world trade passes. Due to the high risk, ships avoid going through Suez and are forced to circumnavigate Africa. "The war in the Red Sea directly and indirectly affects Greek exports", says Mr. Georgios Polychronakis, Special Advisor of the Incofruit Exporters Association - Hellas, to AgroTypos. And he adds: “Transportation costs have almost ...
Source: Agrotypos
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