Iran Conflict Hits Australian Exporters

0:00In Sydney, it's March 13th, and here's what is going on. Australian exporters are dealing with skyrocketing war risk costs on air and sea freight after strikes by Israel and the United States on Iran nearly. Two weeks ago, these extra charges, which cover things like insurance and fuel hikes, can hit $2,000 to $4,500 per container, and even reach hundreds of thousands for some shipments. The chaos is hitting trade worth almost $15 billion a year, with Gulf countries and slowing goods to Europe, too. Shipping lines are avoiding the Red Sea and Suez Canal, again, due to the conflict, forcing vessels to take the long route around the Cape of Good Hope, that adds weeks to journeys and ramps up expenses. Air freight faces similar in certainty, with exporters cutting back on bookings to places like the United Arab Emirates because airports might close. Suddenly, exporters like wool shippers to Italy are seeing bales stuck on halted ships, delaying payments and forcing them to pass costs to buyers.

1:01Beef exporters are scaling down chilled wagyu shipments, while companies worry about poor congestion and unreliable schedules dumping containers at. Wrong ports. Economists say the direct hit to Australia's 2% of exports tied to the Gulf might be limited, but global consumer confidence could tank amid. Energy shocks and uncertainty. Buyers in Europe are already rethinking orders, and firms are eyeing bigger markets like China or the United States. Meanwhile, the federal government held an online briefing this week for over a thousand exporters, calling the situation dynamic and volatile, officials warn of potential inflation spikes worldwide, which could push up interest rates down under. This DNN story comes to you, thanks to our sponsor. Headphones in a pillow? Once you try it, it just makes sense. S-O-L-I-SOLYPELLOW.COM