Oil and liquefied natural gas tankers moving through the Strait of Hormuz carry around 20% of the world’s supply. But for countries on the Persian Gulf, the waterway is more than just an energy route – it’s a lifeline for more than 100 million people.
Now, as the United States and Israel’s war with Iran chokes this vital stretch of water, CNN’s Eleni Giokos explores how it’s also straining food supply into the region.
Saudi Arabia imports more than 80% of its food, the United Arab Emirates around 90%, and Qatar about 98%. In Iraq, too, the bulk of food imports pass through the Strait of Hormuz, despite the country’s access to two major rivers. Even Iran depends on the Strait of Hormuz for much of its trade.
In total, the majority of the food shipments to the region pass through the strait, a passage that is now all but blocked due to attacks on commercial ships in the area.
“At the moment, the supply chain is extremely challenging,” said Daniel Cabral, procurement director at Kibsons International, a UAE-based fresh food and vegetable retailer.
Kibsons has “tons” of food – mostly fresh – in containers on ships currently waiting outside the strait, Cabral told CNN, with no confirmed arrival dates or even ports. “There is a lot of uncertainty,” he said.
Shipping companies have slapped $4,000 surcharges per container destined for “the entire Middle East,” Cabral said. On dry land, trucking and logistics costs range from $4,000 to $9,000 per container to move goods onward to the UAE, Cabral added.
And those costs will eventually be passed on to the consumer. Cabral said Kibsons might increase prices by up to 20% on some products, such as dairy and some fresh produce. “We have about a month of inventory of fresh produce in warehouses.”
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