DP World Expects Cost of Goods from Asia to Be Higher for Europe

DP World CFO Yuvraj Narayan said on Tuesday he expected that disruptions to shipping in the Red Sea as a result of Houthi attacks on vessels would hit European consumers hardest.

“The cost of goods into Europe from Asia will be significantly higher,” Narayan told Reuters at the World Economic Forum meeting in Davos, Switzerland.

“European consumers will feel the pain … It will hit developed economies more than it will hit developing economies,” the Dubai based logistics company’s finance chief added.

Narayan said there was a need to shorten global supply chains to reflect de-globalization, adding that flows from east “will become less relevant”, while north to south will grow.

(Reuters – Reporting by Dmitry Zhdannikov; writing by Alexander Smith; editing by Jason Neely)