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Middle East Conflict Triggers Major Supply Chain Disruption—WFP
(MENAFN) The World Food Programme (WFP) warned Tuesday that ongoing conflict in the Middle East has led to "the most significant disruption of supply chains," affecting approximately 70,000 tons of the organization’s food supplies.
"For us, it's the most significant disruption of supply chains that we have seen since COVID and the beginning of the war in Ukraine," Corinne Fleischer, the agency’s director of supply chain, told reporters in Geneva.
She explained that the agency currently has "70,000 metric tons of food that is impacted by the war in the Middle East," with deliveries delayed or trapped in ports due to broader disruptions linked to the Strait of Hormuz.
"This has a whole upstream effect on vessels being stuck in ports, not berthing at ports, not leaving ports, (and) containers not being offloaded," Fleischer said, describing the situation as "a whole disruption of a global supply chain."
The WFP official also warned that the impact is not limited to the Middle East. Shipping rerouted around Africa adds "about 25 to 30 days of shipping" and increases costs by "between 15 and 25% of rates."
Fleischer noted that the WFP is seeking priority access for cargo and has secured waivers on surcharges, achieving "cost avoidance of about already $1.5 million by now."
She raised serious concerns about growing humanitarian needs. “Our projections are that by June, 45 million more people will be acutely hungry,” she said, warning of "more needs, higher costs, and us not being able to then reach people" given the current low level of funding for relief operations.
She concluded that these added costs and necessary rerouting translate into higher food prices globally, calling it a "big concern."
"For us, it's the most significant disruption of supply chains that we have seen since COVID and the beginning of the war in Ukraine," Corinne Fleischer, the agency’s director of supply chain, told reporters in Geneva.
She explained that the agency currently has "70,000 metric tons of food that is impacted by the war in the Middle East," with deliveries delayed or trapped in ports due to broader disruptions linked to the Strait of Hormuz.
"This has a whole upstream effect on vessels being stuck in ports, not berthing at ports, not leaving ports, (and) containers not being offloaded," Fleischer said, describing the situation as "a whole disruption of a global supply chain."
The WFP official also warned that the impact is not limited to the Middle East. Shipping rerouted around Africa adds "about 25 to 30 days of shipping" and increases costs by "between 15 and 25% of rates."
Fleischer noted that the WFP is seeking priority access for cargo and has secured waivers on surcharges, achieving "cost avoidance of about already $1.5 million by now."
She raised serious concerns about growing humanitarian needs. “Our projections are that by June, 45 million more people will be acutely hungry,” she said, warning of "more needs, higher costs, and us not being able to then reach people" given the current low level of funding for relief operations.
She concluded that these added costs and necessary rerouting translate into higher food prices globally, calling it a "big concern."
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