Middle East Conflict Hits Bremen and Bremerhaven Businesses with Rising Costs and Falling Orders

The ongoing conflict in the Middle East is causing significant economic strain on companies in Bremen and Bremerhaven, with three out of four firms reporting negative impacts on their operations. A recent survey by the German Chamber of Commerce and Industry (DIHK) involving 2,400 companies nationwide, including 62 from Bremen and Bremerhaven, reveals widespread increases in energy costs, freight and transport expenses, and raw material prices.

According to the survey, 74% of firms in the region face higher energy bills, while 64% report increased freight and transport costs. Around 60% have seen a rise in raw material prices, and nearly half experienced declining demand and fewer orders. Although 12% of companies nationally report shortages of raw materials or intermediate goods, Bremen and Bremerhaven have not yet encountered major supply disruptions. Sectors such as manufacturing, construction, trade, and logistics bear the brunt of these challenges.

Dr. Matthias Fonger, CEO of the Bremen Chamber of Commerce, stressed the need for urgent governmental action to ease the burden on businesses. He called for reducing energy costs, cutting bureaucracy, and simplifying processes to bolster competitiveness, especially since rising transport costs threaten Bremen and Bremerhaven's status as vital ports and logistics hubs. As a response, about half of the businesses are strengthening their risk management practices and passing some cost increases onto customers. However, 27% have already postponed investments or projects due to financial pressures, posing a risk to future economic growth.

The Chamber of Commerce is proactively supporting companies with expert advice on customs, export control, and international trade to enhance resilience amid uncertain geopolitical conditions. The strong demand for professional guidance was highlighted by the fully booked Export Control Day event, underscoring the need for reliable frameworks to safeguard the local economy.

With ongoing geopolitical tensions unlikely to dissipate soon, Bremen and Bremerhaven businesses face continued operational challenges. Key to mitigating these effects will be decisive government measures to improve the economic environment and maintain the critical logistics infrastructure of the region.