Some Ghanaian businesses operating in Israel have expressed concern over a potential surge in freight charges due to the escalating conflict between Israel and Iran. With tensions rising between the two nations, shipping costs are expected to increase significantly, posing serious challenges for businesses that rely on imports and exports in the region.
Speaking to Joy Business, President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng said some members are worried about the impact of the conflict on the cost of freight.
He disclosed that freight charges along the route are already showing signs of instability, making it difficult for businesses to plan ahead.
“The main issue we foresee is the impact on freight charges and delays in the delivery of goods because many shipping lines may be forced to reroute. If care is not taken, the Strait of Hormuz could also be closed,” Dr. Obeng warned.
The conflict has already triggered a 3% increase in global oil prices since markets reopened, following a reported U.S. strike on three Iranian nuclear facilities.
Dr. Obeng called on the United Nations and global leaders to intervene swiftly to prevent further escalation.
“Most essential cargo passes through this corridor. That’s why we do not want to see this war escalate. We’re pleading with world leaders, the UN, and the United States to seek a ceasefire and find a diplomatic or political solution to the conflict,” he said.
Meanwhile, the Government of Ghana is reportedly considering suspending the Price Stabilization and Recovery Levy as part of efforts to cushion consumers from a potential surge in global oil prices should the Israel-Iran conflict intensify further.