Problems affecting shipping in the Red Sea are also hitting Belgian companies. Entrepreneur Ihab Elozeiri from Veurne (West Flanders) ships fertilisers to Asia, but in recent weeks saw his trade virtually grind to a halt due to increased transport costs. "We can't keep this up. A solution is urgently needed," he says. Meanwhile at Volvo in Ghent production is halted due to delays.
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West Flemish businessman Ihab Elozeiri is feeling the impact of Houthi attacks
Colin Clapson
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For more than a month now, attacks by Houthi rebels from Yemen have disrupted international shipping travelling via the Red Sea. Large container ships now have to choose: either the route via the Suez Canal, the short but dangerous way, or the route via South Africa, the safe but much longer and therefore more expensive route.
This creates problems for large companies importing parts from Asia, but small entrepreneurs have also been affected. One such businessman is Ihab Elozeiri from Veurne (West Flanders), managing director of Emexon International. "We are an exporter of organic fertilisers to Asia. We buy our products from big producers in Belgium and we export through Egypt and the Red Sea," he says.
"After the problems due to the pandemic and the war in Ukraine, the price of transport fell sharply. Things started improving. We were happy once again to sell at a good price, but suddenly there is this situation in the Middle East that we didn't think would affect us”.
"This week 10 containers cancelled "
Both Mr Elozeiri as an exporter and fertiliser producers are feeling the impact of the problems in the Red Sea. "The price has shot up 40 to 50 euros. Our customers are not accepting that and have cancelled their orders. Our income has been hit hard."
"Sailing around Africa leads to delays and that means more oil and greater costs. We have to pass that on to our customers, but yes, if they don't want to pay… This week, for instance, I have 10 containers, all cancelled."
Mr Elozeiri calls for the matter to be sorted out as soon as possible. "We cannot keep this up for long. Customers don't want to pay and soon the high season will start. The problems in the Middle East must stop."
Volvo Ghent shuts down for three days
Large companies too are also feeling the impact. One of the affected sectors is the automotive industry. Volvo's factory in Ghent, for example, is shut down for three days because of a shortage of parts. The Belgian Employers’ Organisation expects that additional temporary unemployment will be needed at a number of companies in coming weeks and months.
Supermarket supplies of fruit and vegetables will also be hit. This includes e.g. grapes from India, though the impact is limited, as the vast majority of what is on the shelves here comes from within Europe.