Middle East tensions could push up logistics costs of some goods by up to 30%, say retailers

Since the war broke out last weekend, Mr Ramzani said his logistics costs have gone up by 25 per cent, which he has absorbed so far.

Dates, which Muslims eat during their pre-dawn meals and to break their fast, are transported in refrigerated containers to keep them fresh.

However, major shipping lines have imposed war risk surcharges on cargo moving to and from the Middle East. These surcharges can reach up to S$5,000 (US$3,920) per container.

Observers say shifting trade routes could also lead to delays of up to 14 days.

To cope with this, Mr Ramzani has started pooling resources with other importers - sharing costs and risks - to bring in different types of dry fruits, nuts and dates. They first used this strategy during the COVID-19 pandemic.

"We realised because it was not possible for a single importer to import everything … we sat down and discussed: ‘Why don't we share one region? You import from other regions, I import them (from another). We bring in all the stuff here, then we share with each other’,” Mr Ramzani recounted.

Such sharing reduces investment risk for importers like him, he added.