Mar 4 β€’ 13:47 UTC πŸ‡ΆπŸ‡¦ Qatar Al Jazeera

Economist predicts a 400% increase in shipping costs

Dr. Ahmed Al-Shami warns that current geopolitical tensions could lead to a dramatic increase in shipping costs.

In recent remarks to Al Jazeera, Dr. Ahmed Al-Shami, an expert in transportation economics and former member of the General Assembly of the Holding Company for Maritime and Land Transport, has predicted a staggering increase in shipping costs by 200% to 400%. This forecast is rooted in the geopolitical turmoil surrounding the U.S.-Israeli conflict in Iran, which is taking place in a critical region for global trade and energy. He emphasized that these developments are part of a larger equation of political and economic control over vital global trade routes.

Dr. Al-Shami noted that the ongoing disruptions should be analyzed within the context of global politics, where major powers seek to dominate the pathways of other nations. He elaborated that the impact of such geopolitical strategies includes fluctuating energy prices, heightened tensions in maritime routes, sanctions, and even warfare, all of which serve to extend political and financial influence. Such dynamics are crucial as they can significantly affect the global economy and international trade practices.

The region facing these tensions is a vital artery for international commerce, with the Red Sea being a key transit point for three of the world's most crucial maritime routes. The potential increase in shipping costs due to geopolitical provocations raises concerns about not only economic stability but also the accessibility of goods globally, especially in a time when supply chain disruptions are already prevalent. Dr. Al-Shami's warnings highlight the interconnectedness of global trade and political stability, urging businesses and governments to prepare for the ramifications of these escalating tensions.

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