Houthi attacks cause trade through the Suez Canal to decrease by 42% in two months
Trade traffic through the Suez Canal has declined by 42% over the past two months, as a result of Houthi rebel attacks in the Red Sea, according to a report issued by the United Nations.
This decline raises concerns about its repercussions on global trade.
Jan Hoffmann, an official at the United Nations Trade and Development Organization (UNCTAD), expressed his deep concern about attacks on shipping in the Red Sea, noting that these attacks increase trade disruptions linked to geopolitics and climate change.
The UNCTAD report indicated that the volume of trade through the Suez Canal decreased by 42% during the past two months due to the suspension of ship transit due to the Houthi attacks.
The weekly number of container ship transits also decreased by 67% year on year.
Since November, Houthi rebels have been targeting ships in the Red Sea and Gulf of Aden, suspending ships from crossing important sea lanes.
UNCTAD warns that trade disruptions in the Red Sea could lead to delays in the delivery of goods, increased costs and higher global food prices, considering that more than 80% of global trade in goods takes place by sea.
Reports indicate that trade disruptions in other regions as well, such as the Black Sea and the Panama Canal, may affect global supply chains and increase the risks of inflation and higher food prices.
