The Ukraine war is stifling trade and logistics in the Black Sea region, increasing global vessel demand and the cost of shipping around the world, a new report by the UN has said.
Disruptions in regional logistics, the halting of port operations in Ukraine, destruction of important infrastructure, trade restrictions, increased insurance costs and higher fuel prices have all led to shipping hurdles in the region, the UN Conference on Trade and Development (Unctad) said.
Shipping distances have increased, along with transit times and costs, as Ukraine's trading partners now have to source commodities from farther away.
"Grains are of particular concern given the leading role of the Russian Federation and Ukraine in agrifood markets, and its nexus to food security and poverty reduction," the report said.
Between February and May 2022, the price of transporting dry bulk goods — such as grains — increased by nearly 60 per cent, Unctad said.
The increase in grain prices and freight rates could lead to a nearly 4 per cent increase in consumer food prices globally. Almost half of this impact is due to higher shipping costs, the report said.
Russia and Ukraine are prominent players in agrifood markets, including animal feed. Together, they account for 53 per cent of global trade in sunflower oil and seeds, and 27 per cent of wheat, figures compiled by Unctad show.
A total of 36 countries import more than 50 per cent of their wheat from Russia and Ukraine alone.
Before the war, estimates projected a growth of 3 per cent in global sea exports of grain. Now, however, they are projected to shrink by 3.8 per cent in 2022.
Russia is also a major player in the global market for crude oil and fertiliser, both of which are key inputs for farmers worldwide.
Disruptions in their supply can lead to lower grain yields and higher prices, with serious consequences for global food security, particularly in vulnerable and food-import dependent economies, the Unctad warned.
Global shipments of fertiliser and its inputs such as potash are projected to drop by 7 per cent in 2022, it said.
The Russia-Ukraine conflict will keep food and energy prices at “historically high levels” until 2024, the World Bank said last month.
Middle-income economies are expected to experience slightly higher food price increases as their imports depend on dry bulk shipping more than the global average, Unctad said.
The impact of the dry bulk freight rate surge on low-income economies is expected to be smaller as their food imports are concentrated on processed rather than primary food products, partly because of their low capacity to process food.
The Russia-Ukraine war has also led to higher energy costs, which in turn have caused marine bunker prices to rise, increasing shipping costs for all sectors.
By the end of May 2022, the global average price for very low sulphur fuel oil (VLSFO) reached more than $1,000 per tonne, a 64 per cent increase compared to the start of the year, with average fuel surcharges charged by container shipping lines up close to 50 per cent since the beginning of the war, Unctad said.
"Taken altogether, these increased costs imply higher prices for consumers and threaten to widen the poverty gap," the report said.
_______________________
Russia-Ukraine conflict - in pictures
_______________________
Policy action is required for global trade to flow more smoothly and for the maritime shipping sector to recover, the UN body said.
"There will be no effective solution to the food crisis without reintegrating Ukraine’s food production, as well as the food and fertiliser produced by the Russian Federation into world markets — despite the war," it said.
It recommended ensuring Ukrainian ports are open to international shipping to allow Ukrainian grain to reach overseas markets, at lower shipping costs.
The agency also called for measures to ease the movement of transport workers, albeit temporarily, to reduce pressure on cross-border trade and transit.
Governments should also invest in transport services, as well as trade and transit facilitation even more than in pre-war times, Unctad said.
It also urged support for developing countries, especially the most vulnerable economies, and net-importers of food.
"The war in Ukraine adds to the challenges posed by the Covid-19 pandemic and the climate crisis. The international community’s support is needed to provide financial and technical assistance related to transport and trade facilitation," Unctad said.
RIDE%20ON
%3Cp%3EDirector%3A%20Larry%20Yang%3C%2Fp%3E%0A%3Cp%3EStars%3A%20Jackie%20Chan%2C%20Liu%20Haocun%2C%20Kevin%20Guo%3C%2Fp%3E%0A%3Cp%3ERating%3A%202%2F5%3C%2Fp%3E%0A
The specs
Engine: 2.2-litre, turbodiesel
Transmission: 6-speed auto
Power: 160hp
Torque: 385Nm
Price: Dh116,900
On sale: now
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Sweet%20Tooth
%3Cp%3E%3Cstrong%3ECreator%3A%20%3C%2Fstrong%3EJim%20Mickle%3Cbr%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EChristian%20Convery%2C%20Nonso%20Anozie%2C%20Adeel%20Akhtar%2C%20Stefania%20LaVie%20Owen%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2.5%2F5%3C%2Fp%3E%0A
'How To Build A Boat'
Jonathan Gornall, Simon & Schuster
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
U19 WORLD CUP, WEST INDIES
UAE group fixtures (all in St Kitts)
- Saturday 15 January: UAE beat Canada by 49 runs
- Thursday 20 January: v England
- Saturday 22 January: v Bangladesh
UAE squad:
Alishan Sharafu (captain), Shival Bawa, Jash Giyanani, Sailles
Jaishankar, Nilansh Keswani, Aayan Khan, Punya Mehra, Ali Naseer, Ronak Panoly,
Dhruv Parashar, Vinayak Raghavan, Soorya Sathish, Aryansh Sharma, Adithya
Shetty, Kai Smith
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
The specs: 2018 Maserati Levante S
Price, base / as tested: Dh409,000 / Dh467,000
Engine: 3.0-litre V6
Transmission: Eight-speed automatic
Power: 430hp @ 5,750rpm
Torque: 580Nm @ 4,500rpm
Fuel economy, combined: 10.9L / 100km
Read more from Aya Iskandarani
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Alaan%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202021%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Parthi%20Duraisamy%20and%20Karun%20Kurien%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20%247%20million%20raised%20in%20total%20%E2%80%94%20%242.5%20million%20in%20a%20seed%20round%20and%20%244.5%20million%20in%20a%20pre-series%20A%20round%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A
