It’s business as usual today at the Port of Halifax. One ship is in and being unloaded and loaded with goods. Eyes however are fixed on the conflict on the other side of the globe. “The entire global supply chain is interconnected. So, when there’s a ripple in one place, it will eventually ripple out to other places,” says Paul MacIsaac, senior VP of the Halifax Port Authority. The United States-Israeli attack on Iran has brought shipping in the Strait of Hormuz to a near standstill. “This really narrow choke-point waterway is critical to the global economy,” says Naveen Das, a senior crude oil analyst with KPLER. Twenty percent of the world’s daily supply of oil flows through the 33-kilometre-wide passage between Iran and Oman. Following attacks on ships and the threat of more from Iran, more than 200 vessels are now anchored in the strait. Many of them are carrying either petroleum products or consumer goods. “This higher inflation will impact the consumer in a whole different number of ways. Cost for travel will increase, cost for groceries, the cost of getting groceries into the supermarkets will increase as well,” Das says. Prices at the checkout could jump significantly within a few weeks according to the director of Dalhousie University’s Agri-Foods Sylvain Charlebois. “When typically there’s a jump like this, the lag is typically between one month to three months, but there’s a lot of certainty right now across the board, so we are expecting a bit of a jump. Based on what we did with our models is that if diesel goes up 25 per cent, coupled with the increase of the carbon tax on April 1, because that still exists, the industrial carbon tax, we’re likely going to see food inflation go up by as much as .7 per cent.” Still, port business continues. Paul MacIsaac, says he’s not just watching incoming cargo, exports could also soon be affected. “We connect with 150 countries around the world so some of the product goes to that region,” says MacIsaac. A half-a-million containers pass through the Port of Halifax each year. As the war continues, officials say they’re ready and able to increase the amount of cargo the port handles should the need present itself. For more Nova Scotia news, visit our dedicated provincial page
