PEZA: Red Sea closure hikes shipping costs by 15%

29 Jan 2024
The Philippine Economic Zone Authority (PEZA) said it is working with registered business enterprises (RBEs) on how to cushion the possible effects of the closure and shutdown of the Red Sea to trade.

In a statement on January 19, PEZA director-general Tereso Panga said the shutdown will make shipping costs 15percent more expensive and add 10 days for the exchange of goods between Europe and Asia.

“It will definitely affect global trade, delaying production and deliveries of products and resources thereby increasing the cost of goods. The effect of which will be higher inflation in different parts of the world,” Panga said.

Panga said while the Philippines is yet to feel the effects, PEZA is   pro actively working together with other concerned agencies to de-risk global supply chains that may affect  its locators in particular and the whole economy in general.

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