Sea freight prices for petrochemical products have increased 15% in the last over the three years according to Hamad al-Terkait, vice chairman of GPCA and former president of Equate Petrochemical.

Speaking during the fourth GPCA supply chain conference in Dubai yesterday, al Terkait said that high oil prices impacted the bunker fuel, which was the main reason of the increase. "The cost of the logistics is the second main cost behind the cost of the feedstock," said al Terkait. "Shipping costs represent about 30% of the total cost of the export of petrochemical and chemical products," he added.

The region currently exports about 90 million tonnes per year of petrochemical, which represents about 25% of the world's exports. "By 2015, the total exports of petrochemical and chemical products from the region are set to reach 120 million tonne per year," he added.

Al-Terkait also said that about 90% of the total petrochemical and chemical products produced in the region is exported. "We urge local government to boost investments that use petrochemical products as a feedstock, to move further down the downstream chain," he added. "This will reduce the cost of import of products that will be produced locally, and also will create jobs for locals."

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