Rising freight costs hit Ghanaian businesses amid middle east tensions

Some Ghanaian-owned businesses operating in Israel have raised serious concerns about a potential spike in freight charges as tensions escalate between Israel and Iran.

With the conflict threatening to disrupt key shipping routes, the cost of imports and exports is expected to rise sharply, posing a major challenge for traders who depend on stable, affordable logistics.

Speaking in an interview, the President of the Ghana Union of Traders Association (GUTA), Joseph Obeng, revealed that several members of the association are already feeling uneasy about the situation.

He warned that freight charges on routes connecting Israel and its trading partners are becoming increasingly unpredictable.

“We’re seeing early signs of volatility in freight costs, and that’s very worrying. The key concern is not just the rising prices, but the possibility of delays as shipping lines may begin to reroute vessels to avoid conflict zones, if the Strait of Hormuz is closed, as feared, it could have far-reaching consequences for global trade,” Mr. Obeng explained.

The conflict has already driven up global oil prices by 3%, following a U.S. airstrike on three Iranian nuclear facilities.

This spike in energy prices could further inflate shipping costs, adding to the financial burden on businesses and consumers alike.

Dr. Obeng called on world leaders and international bodies to take swift diplomatic action.

“Many essential goods pass through this corridor. We are not in support of any escalation. We appeal to the United Nations, the United States, and global leaders to push for a ceasefire and a peaceful, political resolution to this crisis.”

In response to the growing uncertainty, the government is reportedly considering suspending the Price Stabilisation/ and Recovery Levy to help cushion consumers from rising oil prices if the situation worsens.