SHIPPING costs in the United Arab Emirates (UAE) have surged dramatically in recent days, doubling due to a container shortage triggered by an export rush from China to the US, reports Dubai's Khaleej Times.
This followed a temporary easing of tariffs between the US and the world's second-largest economy.
Industry executives warn that businesses in the uae are unable to absorb the entire increase in freight charges and are therefore passing part of the cost onto consumers.
'Shipping costs have more than doubled over the past 10 to 15 days. We used to pay between US$1,000 to $1,400 per container, but now we're being quoted $2,500 to $3,000,' Anis Sajan, vice-chairman of Danube Group, a Dubai-based building supplies conglomerate.
'This sharp rise is a direct result of the sudden surge in shipments after the US temporarily relaxed tariffs on Chinese goods.'
Despite the steep rise in prices, Mr Sajan noted that container availability remains limited. 'In some cases, we're willing to pay double, but we still can't secure containers. Most vessels and containers have been redirected to the US, leaving Middle Eastern importers struggling to find capacity.'
SeaNews Turkey
This followed a temporary easing of tariffs between the US and the world's second-largest economy.
Industry executives warn that businesses in the uae are unable to absorb the entire increase in freight charges and are therefore passing part of the cost onto consumers.
'Shipping costs have more than doubled over the past 10 to 15 days. We used to pay between US$1,000 to $1,400 per container, but now we're being quoted $2,500 to $3,000,' Anis Sajan, vice-chairman of Danube Group, a Dubai-based building supplies conglomerate.
'This sharp rise is a direct result of the sudden surge in shipments after the US temporarily relaxed tariffs on Chinese goods.'
Despite the steep rise in prices, Mr Sajan noted that container availability remains limited. 'In some cases, we're willing to pay double, but we still can't secure containers. Most vessels and containers have been redirected to the US, leaving Middle Eastern importers struggling to find capacity.'
SeaNews Turkey
