BEIJING - The conflict in the region has disrupted the Strait of Hormuz and key regional waterways. Shipping costs for a 20-foot container have risen from $2,000 to more than $7,000, placing heavy pressure on Kurdish businesses.
BEIJING - The conflict in the region has disrupted the Strait of Hormuz and key regional waterways. Shipping costs for a 20-foot container have risen from $2,000 to more than $7,000, placing heavy pressure on Kurdish businesses.
“Currently, purchasing goods from China has noticeably declined for two main reasons. First, traders are uncertain about how the situation will develop. Second, transportation times have become longer and shipping costs have increased sharply, which ultimately raises the price of goods and makes them more expensive,” Sivan Mohammed Karim, a Kurdish trader, told Rudaw.
The disruption in the Strait of Hormuz has reduced trade activity for Kurdish merchants, forcing them to use alternative routes that take more time and cost significantly more, including the Red Sea to Aqaba in Jordan or Mersin in North Kurdistan.
“Last year, the cost of transporting goods ranged from $2,000 to $3,500, and customs duties were around 4 million dinars. However, this year, transport costs have risen to between $9,000 and $10,000. At the same time, customs fees have increased significantly, reaching 10, 15, and even 20 million dinars—about ten times higher,” Sayed Zaid, another Kurdish trader, said.
China is Iraq’s largest trading partner, with annual trade exceeding $55 billion. And Iraq is a member of the Belt and Road Initiative.