'HK shippers brace for higher costs over US-Iran war'

A local shipping sector representative on Monday said while the conflict in the Middle East may have limited impact on the industry in the short term, shippers would have to bear higher costs in the long run. The military showdown between Iran and the United States has driven up oil and gas prices, while equities tumbled. Speaking in an interview with RTHK, Peter Hui, chairman of the Hong Kong Shippers' Council, pointed out that only about five to 10 percent of local shippers have business dealings with the Middle East region. "Until this moment, in the short term, in fact, the impacts might not be very substantial, especially for Hong Kong shippers," he said. "But because Dubai area is also the transshipment hub to the southern Europe, Africa and Mediterranean [regions], so it'll indirectly affect many businesses." Hui pointed to a seafood trading firm that ships fish from the southern Europe to Hong Kong as well as the mainland, noting that the company now has to find an alternative route because Dubai airport was closed. "We can see that no matter where you are doing businesses with, the shipping costs might have an increase - no matter what," he said. Hui also warned of the impact of a prolonged war. "Luckily, late February or early March is the low season for the shipping industry or the manufacturing business. "But if it's going to last for a longer period, I expect the Hong Kong shippers to bear higher shipping cost. It is a must." Edited by Edmond Fong