Climbing logistics costs could affect exports warns Chinese-Portuguese Chamber of Commerce

Last week, the president of the Association of Chinese Manufacturers of Hong Kong (CMA),  Lo Kam-Wing admitted that some companies had reported increases of up to 100% in long distance logistics costs with emphasis to and from Europe and the Middle East.

And the Secretary-General of the Portuguese-Chinese Chamber of Commerce and Industry (CCILC), Bernardo Mendia, told the Portuguese news agency Lusa that the increase in transport costs due to the conflict in the Middle East could affect Portuguese exports.

According to the Hong Kong public broadcaster RTHK, Wingco Lo Kam-wing said, at a lunch with the local press, that “transport insurance costs have also increased”.

“Of course, this will affect Portuguese exports,” confirmed Bernardo Mendia, who is also president of the Portugal-Hong Kong Chamber of Commerce and Industry.

On the one hand, the businessman explained that the rise in logistics costs makes Portuguese products “more expensive, therefore less competitive” in the international market.

Since the United States and Israel began hostilities against Iran on February 28, Tehran has controlled the Strait of Hormuz, a strategic waterway through which a fifth of the world’s oil consumption normally passes.