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This is the current situation when it comes to global business Being an entrepreneur is to understand the underlying facts that risk is real. 11 days NOW into the war and there is still no signs of retreating. Ok, Trump said four to five weeks and its effects are translating into the economy. I talked about the high gas prices but nationally and in the international markets.
We should be expecting scarcity, I want to talk from the area of exportation. At least I have been in mentorship training to study and to soon enter this market. Nevertheless, as it stands, the current market situation is not for novices. Trust me, you wouldn't want to be in a ‘try your luck scenario’ if I should say with your little capital.
Those with that backup capital and experience will be the forefronters till this entire chaos dies down. The current risk of exportation right NOW is pegged ‘at your own risk’. On one hand, we should consider the cost, something that can be discussed and ironed out between transactions partners and well, we can also talk of delays.
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I will be focusing on Nigerian goods exporters. As it stands, there has been an extension of 10-14 days delivery delays. War risk insurance has spiked up to 400% and as I earlier said, freight fees have become high.
This shows how impactful the Straits of Hormuz is to the global economy. We heard news (threatening ambition) by the Iranian military to attack ships forcing their way through these routes.
One can't undermine this talk because we have actually seen the Iranian military with some other terrorist groups flying missiles light starlights across the Middle East. We can move on to say that many Nigerian exportpreneurs will have to be on a halt. The Ripple effects is that we are already seeing an unemployment scenario here.
Some of those who have been dependent on shipping in and out of goods will be out of business for the meantime. Some expect this war may span longer than expected while others feel one deadly blow by either party will force a peace talk. I talked about how Mojtaba has replaced his father as supreme leader (this is something President Trump said is unacceptable). The election and the disagreement is what one can use as a suggestion as to how long this entire war is likely to last.
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Talking of exportation, maybe we should look away from the goods market and talk a little about human lives. Many travellers are still stock in the Middle East, the risk of flights are very high.
It was something I discussed a little in my yesterday’s article as to how the United Kingdom are planning to enter into the matter as concerns to their citizens who have become a victim to this unexpected war escalations.
To conclude let me add, the waters and the air are currently very risky in the Middle East. Anything about trading that needs to pass through the Straits of Hormuz or the Middle East route is definitely at your own risk.
This is an article covered by dani-EL; a broad niche writer. I write on faith, life facts and daily living, business and economics, small scale and daily businessing, cryptocurrency and technology. And yes, I do cover articles on financial education and investment updates. And note, if I happen to be a financial adviser to you, the TOP financial advice should be ‘DYOR’ (Do Your Own Research), I can't afford to break your heart.
