The volume of trade through the Suez Canal, which has been suffering from attacks by Houthi rebels in the Red Sea, has decreased by 42% in the past two months, according to the concerned United Nations, who are worried about the global trade repercussions.
“We are very concerned that the attacks on Red Sea shipping are adding tensions to global trade, exacerbating (existing) trade disruptions due to geopolitics and climate change,” UN Conference on Trade and Development (UNCTAD) head Jan Hoffman told reporters Thursday.
According to UNCTAD, trade through the Suez Canal has decreased by 42% in the past two months due to Houthi attacks, prompting shipowners to suspend passage through the Red Sea.
The weekly number of container ship transits has dropped by 67% on a yearly basis.
Since November, Houthi rebels in Yemen claim to be targeting ships in the Red Sea and the Gulf of Aden, which they consider linked to Israel, in solidarity with Palestinians in Gaza.
The UNCTAD expert emphasized that disruptions in trade in the Red Sea are concerning since “over 80% of global commodity trade is carried out by sea,” and because “other important routes are also under pressure.”
The Black Sea crossing was significantly disrupted following Russia’s invasion of Ukraine, leading to a rise in global food prices in the subsequent months.
Due to drought, the water level in the Panama Canal has also significantly decreased, leading to reduced traffic.
The UN-affiliated organization highlighted that “prolonged disruptions in major trade routes would disrupt global supply chains, leading to delayed deliveries of goods, increased costs and potential inflation,” expressing particular concern about global food prices.
