Sun. Oct 6th, 2024

Oleg Kobyakov, director of the Liaison Office with Russia at the Food and Agriculture Organization of the United Nations (FAO), said that the situation in the Bab al-Mandab and the Red Sea will affect food trade and lead to higher prices.

Kobyakov added: “The Houthi blockade of the Bab al-Mandab Strait and the Red Sea negatively affects the global food trade, and the cost of shipping ships operating this route has almost quadrupled, and the transport of goods has decreased by 30%.”

“This has disrupted existing supply chains, and cargo owners have had to use a long route, sending ships around the Cape of Good Hope to travel between Asia and Europe, this route is 8,000 kilometers longer and takes an additional 10 to 14 days, and the cost of buying additional fuel increases expenses by 15%,” Kobyakov continued.

“As a result, food prices rise and affordability of food products for the consumer decreases,” Kobyakov said.

 

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