The Piraeus Chamber of Commerce & Industry (PCCI) has expressed strong concern over the latest developments in geo-economic balances, which are increasing the cost of shipping, trade and business.
According to the PCCI, the blockade or any disruption to the operation of the Strait of Hormuz, directly affects the global economy. Approximately 20% of the global oil trade, a significant share of liquefied natural gas exports, as well as thousands of commercial ships connecting Asia with Europe and international markets, are transported through this sea passage.
The latest developments in the Persian Gulf region mark a new phase in international trade and energy balances.
The transition from the initial proposal to impose a special transit fee on cargo passing through the Strait of Hormuz towards a model based on bilateral trade and investment agreements, combined with the new blockade applied to the region, creates a particularly complex environment for global trade, shipping and supply chains.
War risk insurance premiums are increasing, freight rates are coming under upward pressure, while many shipping companies are reviewing their business plans in order to ensure the safety of their crews and cargoes.
This burden is gradually passed on to the cost of imports, energy prices, raw materials, and consumer goods, worsening the already existing inflationary pressures.
The developments are particularly significant for Greece, given that the Greek-owned fleet is the world’s largest in the transportation of oil and natural gas. Furthermore, the Greek economy depends to a large extent on the uninterrupted operation of international maritime transport. The increase in transportation costs affects not only energy imports, but also the competitiveness of Greek exports, the operation of industry, trade and logistics services.
The Piraeus Chamber of Commerce & Industry (PCCI) believes that businesses must prepare for a period of increased volatility in international markets.
Monitoring energy developments, diversifying supply chains, strengthening the resilience of logistics and effective cost management are now key priorities for maintaining competitiveness.
At the same time, close cooperation is required between governments, European institutions, the shipping community and business entities to ensure the smooth functioning of international trade and limit the impact of any prolonged instability in the wider Middle East region.
PCCI president Vassilis Korkidis stated: “The developments in the Strait of Hormuz confirm that the economy and trade are now being influenced more by geo-economic decisions than by traditional military balances. The shift from ‘tolls’ to commercial deals may change the form of economic pressure, but it doesn’t reduce the level of uncertainty, especially when free navigation is still being tested. For Greek shipping, which carries a significant share of global energy cargoes, any increase in geopolitical risk translates into higher insurance premiums, increased operating costs and greater security requirements. For the market, this means more expensive transportation, possible delivery delays and new pressure on prices.”
