German shipping, energy executives urge diplomacy as Iran war disrupts global trade

Germany's shipping and energy executives, alarmed by the Iran war and escalating Gulf tensions, are urging urgent diplomacy and policy action to safeguard transport and energy security. Nikolaus Schues, CEO of F. Laeisz, one of Germany's leading shipping companies, said the conflict and ongoing uncertainty about the US-Iran ceasefire are hitting the industry hard and rippling through the wider economy.

Shipping impact

"The conflict has a tremendous effect on international shipping. Tanker rates are going up, bulk carriers' rates are going up. Ammonia carriers' rates are going up," he told Anadolu. Schues warned that a prolonged conflict would hit not only shipping but nearly every sector, raising the risk of a global economic slowdown. Even if Washington and Tehran agree to extend the ceasefire, repairing damaged energy infrastructure and restoring output would take time, keeping markets on edge.

Economic consequences

"The medium-term impact of this conflict will be extremely negative. Energy prices are going up, global GDP will be heavily affected. That means that there is less trade. And shipping is living off international exchange and not off protectionism," he said.

Diplomacy call

Schues called on Germany and its European partners to pursue more active diplomacy. He said the Strait of Hormuz should remain open to international navigation, in line with the 1982 UNCLOS. "Iranians do not respect UNCLOS, which is of great concern. And it is totally forbidden internationally to block international passages at sea," Schues said. He expressed concern that even the US, though not a signatory to UNCLOS, is acting against it.

Energy diversification

Johann Killinger, managing director of the Buss Group, said the war has hit German companies hard. "Energy costs are significantly up, this is harming our economic development in the country and I think the forecasts are already lowering for the remainder of the year," he told Anadolu. Killinger urged European countries to stand together and abandon excessive passivity. "The conflict makes it clear again for Europe, Germany, and also the other countries, that we need to become energy-wise more independent. It means to focus on renewables, wind and solar."

Survey data

Nine out of ten industrial companies said the Iran war has negatively affected their business, according to a survey by Munich-based Ifo Institute. A two-week US-Iran ceasefire mediated by Pakistan is set to expire on April 22, with renewed tensions after US forces seized an Iranian-flagged cargo ship.