Gulfood 2023: UAE consumers could be spending less on food bills as shipping costs drop sharply

Gulfood 2023: UAE consumers could be spending less on food bills as shipping costs drop sharply

Dubai: After nearly a year, UAE consumers will start spending less on food bills in the next few weeks as food import prices finally start to slide. This is because shipping costs have been dropping significantly in the last two months and this will soon be reflected on food prices at the consumer level, according to UAE-based food importers and retailers “Food inflation had peaked – now it’s a time for a drop,” said Dr. Dhananjay Datar, Chairman and Managing Director at Dubai-based Al Adil Trading, which specializes in Indian spices and food. “Freight costs have dropped from $1,150 a TEU to $125 on our sector, and then you have the relatively strong dollar and which makes imports from most sourcing markets much cheaper. “There’s also a third reason, of lower fuel costs than was the case last year. These cost benefits will pass on to the UAE consumer.” It's against this backdrop of expectations that the latest Gulfood trade event opens in Dubai, and which has through the years been one of the most popular industry-specific events in the city. Sources say there’s always some lag between shipping costs coming down and that being reflected on food prices, whether