George Xiradakis, President of the Association of Banking and Financial Executives of Hellenic Shipping and founder and CEO of XRTC Business Consultants, speaks on “Fair Winds and Following Seas” on Voice of Greece. He analyzes the impact on the oil market and shipping, noting that simultaneous pressure on the Strait of Hormuz and the Bab el-Mandeb Strait could cause severe disruption to global trade.
“If the shutdown of the East-West Pipeline, also known as Petroline, which carries crude oil from eastern Saudi Arabia to Yanbu on the Red Sea, continues, it will limit Saudi Arabia’s export capacity and increase the geopolitical risk premium on crude oil prices. These additional costs will be passed on to fuel, air travel and petrochemicals, ultimately affecting inflation and consumers,” the banker and shipping business consultant notes.
Regarding the impact on shipping, Xiradakis explains: “Reduced loadings from Yanbu could lead to charter cancellations. On the other hand, sourcing cargoes from more distant markets increases ton-miles and could boost freight rates for VLCCs and Suezmax vessels.”
Produced and presented by Antonis Karagiannakis