Fighting in the Middle East could lead to food shortages in the region. In particular, Dubai has only 10 days' worth of fresh produce left. This is reported by Financial Times and Bloomberg.
Stefan Paul, CEO of international logistics company Kuehne + Nagel, said about 18% of global air cargo capacity is currently unavailable due to airspace restrictions in the Persian Gulf region.
Among the goods transported by air are temperature-controlled pharmaceuticals, as well as fresh fruit and perishable foods.
As a result, there is a risk to food security in the region, as Gulf countries are heavily dependent on food imports.
According to Paul, Dubai has about ten days' worth of fresh produce left.
"Since most products are imported, stocks, especially fresh goods, can run out quickly," he remarked.
Logisticians are now looking at alternative routes, such as airfreighting goods to Saudi Arabia and then trucking them in. However, the scale of maritime transport makes such a scheme difficult.
"A single container ship can carry up to 20 containers. It's impossible to simply replace that with so many trucks," Paul explained.
The disruption in logistics has led to a rise in transport rates. According to Bloomberg, the cost of transporting goods from Southeast Asia to Europe has increased by more than 6%, to $3,82 per kilogram.
Tariffs for transportation from the Middle East to the EU increased by 8% to $1,62 per kilogram, and shipping from China to the US increased by 15% to $6,90 per kilogram.
Due to the closure of part of the airspace around the Persian Gulf, Qatar Airways, Emirates and Etihad airlines have restricted cargo transportation.
In addition, about 100 container ships are stranded in the Persian Gulf region, and parts of the Middle East are cut off from food imports. Ships are avoiding passage through the Strait of Hormuz, a key route for transporting grain and other products.
