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March
11 (Reuters) - Ratings agency Fitch said on Wednesday that port and airport operators in the Asia Pacific would face mixed, but increasingly negative, credit effects if Iran-linked shipping and airspace disruption persisted.
The U.S.-Israeli war on Iran and Tehran's attacks on the Gulf have left Asia's import-reliant economies particularly exposed to prolonged disruption.
Here are some details from the Fitch report:
* Ports in the Asia Pacific could experience networkdisruption, such as re-routing, that could create short-termcongestion and longer dwell times, increasing the cost oflogistics, equipment and labour, the agency said. * The main risk is a prolonged closure of the Strait ofHormuz, which would amplify shocks across energy, bulk andcontainer supply chains, Fitch said. * The Strait of Hormuz is the world's most vital oil exportroute, with a fifth of the world's total oil consumptionpassing through the channel. * The agency expects some volume pressure on Indian ports ifthe war persists due to higher freight costs, economic slowdownand port congestion from schedule disruptions, but the impactshould be manageable. * China, which relies partly on Gulf-linked crude andproducts, would require longer-haul replacement cargoes to dealwith sustained disruption, the report said. * Additionally, Fitch expects the airports in the region,especially Indian airports, to see near-term traffic volatilityif disruption to West Asian airspace persists.(Reporting by Gursimran Kaur in Bengaluru; Editing by Kate Mayberry)
