Hong Kong Freight Forwarding and Logistics Association: Freight logistics chains in the Middle East and Europe are affected, and shipping costs are expected to increase by 30%.

The tension in the Middle East continues. The Chairman of the Hong Kong Freight Logistics Association, Liu Haoran, stated that many airspace in the Middle East is currently closed, which has a significant impact on the freight logistics chain between the Middle East and Europe. It is estimated that freight costs will increase by 30%. Liu Haoran pointed out that the conflict between Russia and Ukraine has already made it impossible to transport goods through Russian airspace. Most of the goods shipped from Hong Kong to Europe have to fly over the Middle East or transit through it. However, the current situation in the Middle East is affecting the freight logistics, which may result in tens of thousands of tons of goods being stockpiled. It is estimated that the supply of goods for e-commerce will be most affected. Furthermore, the situation in the Strait of Hormuz is also unclear. Liu Haoran stated that it is necessary to continue monitoring the situation to understand the impact on maritime shipping, including whether it would be necessary to detour and how long the delays would be. However, it is believed that maritime shipping costs will also rise.