Filenews 11 June 2021 - by Adamos Adamou
Faced with continuous increases in transport costs, especially via containers from Asia, is the commercial world in Cyprus, which believes that it is only a matter of time before these costs are passed on to the consumer.
The issue was brought to light yesterday in a communication by the CDC, expressing the Chamber's great concern, since, as it notes, the cost of transporting goods in containers from Asia, especially from China, to Europe, has increased significantly since last year and it is expected that very soon it will reach a record $12,000 for a 40-foot container, recording an increase of over 500% within a year!
"While traders are trying to absorb a large part of the costs, they are inevitably forced to raise prices, at a really difficult time, due to the pandemic, while fear of further increases intensifies if this situation continues," the CDC says.
Speaking to "F", the Vice-President of the Chamber, Giorgos Mavroudis, said that the increases observed since last year are the result of the law on supply and demand, noting that for some time there has been a great shortage of transport ships and an even greater shortage of containers.
According to him, due to a decrease in demand up to and including spring 2020, no new orders were placed on the market, either for ships or containers, which have a specific expiry date due to wear and tear. As a result, Mr Mavroudis said, transport costs have increased significantly and this upward trend is expected to continue until at least the end of the year, before new ships and containers start to enter the market.
The Vice-President of the KEBE also said that trade in general and prices were also affected by the accident of "Ever Given" in the Suez Canal. He estimated that, due to the increase in transportation costs, the supply chain will inevitably be affected and broader increases in products will occur, but the rate will depend on each entrepreneur's plan, he said.
Finally, Mr Mavroudis also explained that Cyprus, compared to other destinations, even several more distant destinations, already pays increased transport costs, because fares are always determined according to distance and some areas that do not have alternatives, such as Cyprus, are in a worse position.
However, in yesterday's communication, the KEBE notes that, fully aware of the seriousness of the matter, it has already made representations to all international organisations representing the business sector and to which it is a member (such as the Euro-Chambers, the International Chamber of Commerce, etc.) to actively engage and take action in all directions, so that the situation can be reversed for the benefit of world trade. , consumer businesses and the economy in general. In fact, the C.G. of the Chamber Marios Tsiakakis, according to information provided by "F", has also requested a meeting with China's Ambassador to Cyprus, as part of efforts to address the situation.
