UN says war in Ukraine increases world shipping costs

THE United Nations Conference on Trade and Development (UNCTAD) has detailed how the war in Ukraine is increasing the cost of shipping around the world, reports Singapore's Splash 247.


The UNCTAD report looks at the shipping and transport hurdles in the Black Sea region.


Shipping distances have increased as a result of the Ukraine war, including transit times and costs.


"Grains are of particular concern given the leading role of the Russian Federation and Ukraine in agrifood markets, and its nexus to food security and poverty reduction," said the report.


Between February and May 2022, the price paid for the transport of dry bulk goods increased 60 per cent.


The accompanying increase in grain prices and freight rates would lead to a 3.7 per cent increase in consumer food prices globally.


The Russian Federation is in the global market for fuel and fertiliser, which are essential inputs for farmers worldwide.


"Confronted with trade restrictions and logistical challenges, the cost of oil and gas has increased as alternative sources of supply, often at more distant locations, are called upon," said the report.


Meanwhile, daily rates for smaller-size tankers have dramatically increased.


The higher energy costs have led to higher marine bunker prices, lifting shipping costs for all maritime transport sectors.


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UN says war in Ukraine increases world shipping costs
UN says war in Ukraine increases world shipping costs