“We need to get back to something where freedom of navigation and peaceful navigation is restored, and that will depend on some kind of deal between the two sides in that war.”
Jonathan Josephs speaks to Vincent Clerc, CEO of Maersk the world’s second largest shipping company.
The conflict between Iran, Israel and the United States has led to the closure of the vital Strait of Hormuz. It’s one of the world’s most important shipping routes which before this war, carried about a fifth of global oil supplies. Cargo ships there are being targeted, and seafarers have been killed.
The disruption is halting the transport of vital cargo containers and pushing up energy prices. Countries in the Gulf region like Saudi Arabia, rely heavily on energy exports, and, Asia, where much of it is sold, will be hit hard. Food and fertiliser supplies are also being affected.
It's not just the Strait of Hormuz that's being disrupted. Security threats mean shipping is also avoiding the Red Sea route through the Suez Canal, which because of the sheer volume of cargo traffic, is arguably more important to global trade.
Vincent Clerc says the cost of war will have to be passed on, leading to higher prices for consumers around the world.
Thank you to Jonathan Josephs for his help in making this programme.
The Interview brings you conversations with people shaping our world, from all over the world. The best interviews from the BBC, including episodes with Majid Takht-Ravanchi, Iran’s deputy foreign minister, Jamie Dimon Chief Executiveof JP Morgan Chase and many others. You can listen on the BBC World Service on Mondays, Wednesdays and Fridays at 0800 GMT. Or you can listen to The Interview as a podcast, out three times a week on BBC Sounds or wherever you get your podcasts.
Presenter: Jonathan Josephs
Producer: Clare Williamson
Editor: Damon Rose
Get in touch with us on email TheInterview@bbc.co.uk and use the hashtag #TheInterviewBBC on social media.
(Image: Vincent Clerc Credit: BBC)
