Potential price increases for goods arriving in Cyprus from the Far East may become apparent by the end of January, estimates Marios Tsiakkis, General Secretary of CCCI (Cyprus Chamber of Commerce and Industry).

Additionally, Thomas Kazakos, Director-General of the Cyprus Shipping Chamber, adds that Cyprus could face import and export challenges if these attacks are not addressed. Notably, 98% of Cypriot trade is conducted by sea.

Speaking to Brief, Mr. Tsiakkis mentioned that due to Houthi attacks in the Red Sea, the cost of shipping containers has more than doubled.

He noted that container prices have skyrocketed from $2,300 to nearly $6,000. These increases, he points out, will continue if the issue is not promptly resolved.

According to Mr. Tsiakkis's estimates, the first price hikes due to the crisis in the Red Sea could reach consumers by the end of January with the arrival of new shipments. This will primarily affect prices of electrical appliances and other products shipped to Cyprus from the Far East.

Thomas Kazakos, speaking to Brief, emphasized the need for immediate intervention by capable nations.

He further clarified that 99.9% of targeted ships have no connection to Israel or Israeli interests. Thus, the Houthi argument of attacking Israeli interests due to regional conflict does not hold.

Mr. Kazakos mentioned that while 10 countries are already participating in the Operation Prosperity Guardian, a clearer mandate is needed for a more effective response.

If the attacks continue and the issue remains unaddressed, he warns of greater price increases.

Additionally, as Mr. Kazakos explains, large ships that pass through Cypriot ports play a crucial role in the island's imports and exports.

"If these ships are forced to detour through the other end of the Mediterranean, via Africa, adding 25 days to enter the Mediterranean, you can understand the reduced incentive for major shipping lines to include Cyprus in their routes," he concluded.

Costly and time-consuming detours around the Cape of Good Hope have resulted in freight rates for ships doubling.

Specifically, more than 280 ships have diverted their routes in the past 30 days to avoid the attacks.

According to data from analysts and the international press, rates for the Asia-Mediterranean route increased by 123%, while Asia-Europe rates were 163% higher compared to mid-December, with further increases likely.