The continuing Russia-Ukraine crisis, according to Emmanuel Kofi Mbiah, a former Chief Executive Officer of the Ghana Shippers Authority (GSA), would have a considerable detrimental influence on world trade activity if it continues.
Dr Mbiah said that it would have a significant impact not just on oil and gas supplies, but also on food supply, as the two nations produce a large portion of the world’s grain.
Speaking to the Ghana News Agency (GNA), he said that the consequences of the war on shipping were already being felt.
“The little we are seeing in the stifling of global supply chains is only the beginning, look at the price of oil, for example, all of a sudden, we have gone to US$139 a barrel.”
The impact, according to Dr. Mbiah, was enormous, since the increase in crude oil prices had an influence on practically every aspect of life.
The fight was not just harming European countries, but African nations as well, he added, adding that the war began just as countries around the world were recovering from the COVID-19 epidemic and attempting to re-establish supply networks.
“You would think you are far away so the impact is not on you, but you would realize the imports, especially, processed foods are going to be expensive, fuel prices have gone up, bunkers have increased prices, and freight rates will go through the roof.”
Between them, Russia and Ukraine supply 30% of the world’s wheat need. Ukraine is also the world’s fourth-largest corn exporter and the fifth-largest wheat exporter.
He said that the Black Sea-Azov region had become a dangerous passage, blocking 140 merchant ships and causing collateral damage to some commercial boats from missile attacks.
