business
The War in the Middle East Affects Norwegian Salmon Exports
Closed airspace following the weekend's attacks in the Middle East creates challenges for Norwegian seafood exports to Asia.
Published
On Saturday morning, Norwegian time, the USA and Israel conducted airstrikes against Iran. Since then, fighter jets and missiles have dominated the region, and several countries have closed their airspaces for safety reasons.
Although the countries that are directly affected purchase little Norwegian salmon, the closures impact some of the most important flight corridors for exports to Asia.
Important transport route
Dubai International Airport, the world's busiest for international passenger traffic, was closed on Saturday following Iranian attacks. The United Arab Emirates is keeping its airspace partially closed until Wednesday, March 7th, according to Flightradar24.
This has direct consequences for Norwegian salmon, which is largely transported in passenger planes via Dubai, Doha, and Abu Dhabi.
Seafood analyst Herman Dahl at Nordea says the situation affects one of the most important transport routes for Norwegian salmon to Asia.
There will be little passenger traffic to Dubai
"The logistics towards Asia may become more challenging. Many of the planes go via airports in the Middle East," he says to iLaks.
May push prices down
Qatar Airways, Emirates, and Etihad are among the largest operators transporting Norwegian salmon eastwards. When passenger traffic comes to a halt, much of the cargo capacity also disappears.
"I would think that there will be little passenger traffic to Dubai and similar places in the coming weeks and perhaps months, depending on how long it lasts," Dahl tells the newspaper.
When exports become more difficult, it can affect prices in the market.
"In the short term, it can lead to weaker prices, because it is more difficult to export the fish eastwards," says the seafood analyst to iLaks.
