Geopolitical Tensions Disrupt International Shipping and Logistics

RAJKOT, તા.19: The current geopolitical tensions and war situation have severely impacted shipping and logistics arrangements at the international level. The MSME sector and exporters are facing many difficulties. The logistics system has almost collapsed and economic uncertainty has increased among exporters. Thousands of containers have been forced to divert and are stuck at ports. This has led to heavy delays and especially loss of perishable goods. Further, exports to Middle East countries such as Dubai, Kuwait and Iraq have been severely disrupted. The closure of the Gulf of Hormuz has led to many shipments being held up. Logistics costs have increased 3 to 5 times. This has led to cash flow disruptions, delays in payments, rising stock costs, and working capital.