The current crisis is forcing the European Union and Asia to look for alternative supply chains. The Middle Corridor, which passes through Central Asia, could become an essential trade route.
Despite the efforts of European governments and the European Central Bank, inflation persists. Added to the high costs of energy are the multiple geopolitical crises which also play a key role: the wars in Ukraine and Gaza, the Houthi attacks in the Red Sea and the tensions between the United States and China.
“All crises, each in their own way, affect global trade routes. Ultimately, this translates into increased costs: increased transport, security and communication costs” says Dimitrios Rallis, Deputy Secretary General of the Black Sea Economic Cooperation Secretariat.
Transport corridors from Asia to Europe and supply chains for products consumed by Europeans have been disrupted, leading to a significant increase in final costs.
Angelos Vlachos, CEO of Port of Kavala SA, says: “I’ll give you an example: in the last quarter, the cost of container transportation increased by up to 100%.”
In order to ensure sufficient quantities of goods for European customers, it is necessary to develop new transport corridors between Asia and Europe, according to experts of the 5th Balkans and Black Sea Forum at the port of Piraeus. Today, the Middle Corridor which connects China to Europe via Central Asia and the Black Sea region is the preferred route.
“People are thinking about alternative corridors between Europe and East Asia. There are three possible alternatives. The Black Sea can be the central corridor which will partly depend on the port of Piraeus and which will also extend towards the north, towards Hungary and central Europe” explains Renwei HUANG, executive general director of the Fudan Institute for Belt and Road and Global Governance.
The European Union and China have expressed their common desire to develop the Middle Corridor in order to address current geopolitical challenges and strengthen the security of supply chains.