GENEVA (AN) — Disruption to shipping through the Strait of Hormuz could push smaller companies out of global supply chains even if overall trade eventually recovers, as higher energy, transport and financing costs fall disproportionately on firms already operating with thinner margins, U.N. Trade and Development warned.
The risk is particularly acute in developing economies, where small firms face import compliance costs equivalent to 19.4% of the value of the goods they import, compared with 14.7% for large companies, UNCTAD said in an analysis released Tuesday.
