© Unsplash/Angus Gray。 Attacks on merchant ships in the Red Sea have seriously disrupted international shipping. (File photo)
The Houthi attacks on Red Sea shipping are having a devastating impact on already fragile global trade and supply chains, Amid major challenges posed by the war in Ukraine and the low water levels of the Panama Canal linked to climate change, Jan Hoffmann, Chief of the Trade and Logistics Service of the United Nations Conference on Trade and Development (UNCTAD), said Jan Hoffmann today.
According to Hoffman, these attacks have not only exacerbated geopolitical tensions, but have also led to higher shipping costs and increased greenhouse gas emissions.
"Maritime transport is the true lifeblood of global trade, and these disruptions highlight the vulnerability of maritime transport in the face of geopolitics, tensions and climate change," Hoffman told reporters at UN Headquarters in New York via video link in Geneva. ”
Assault and counterattack
The Houthi rebels, also known as "Ansar Allah", control most of Yemen, including the Red Sea coast.
Since last November, the Houthis have intensified their attacks on ships heading to the Suez Canal through narrow waters, claiming they are targeting ships heading to Israeli ports.
In response, the United States, along with Britain and other countries, launched air strikes on the group at sea and now on land, further escalating tensions in the region.
A vital hub
The Suez Canal is an important transport hub for international shipping, with the waterway carrying 12 to 15 percent of the world's maritime trade, including about 20 percent of the maritime container trade.
The disruption of this important hub could have a catastrophic ripple effect across the globe. For example, in March 2021, the large container ship Ever Given ran aground in the Suez Canal, blocking the canal for several days.
For now, ships are avoiding this route and detouring to a longer shipping lane at the southern tip of Africa, given the risk of attack.
According to UNCTAD, the transit of container ships has fallen by 67% compared to a year ago. The most affected are LNG carriers, which have been completely grounded since January 16.
And before the Red Sea crisis, there were usually two to three gas carriers passing through the region every day.
Global shipping is at stake
The war in Ukraine and the unusually low water levels in the Panama Canal caused by climate change have led to significant challenges to global trade, and the Red Sea crisis has made the situation even more precarious for global shipping.
The continued low water level in the Panama Canal has led to a 36 percent drop in vessel crossings compared to last year and nearly 62 percent compared to two years ago.
The impact is significant, Hoffman said, noting that the average spot rate for containers has skyrocketed.
Since the beginning of December 2023, the average shipping cost from Shanghai has more than doubled, and the average shipping cost to Europe has more than tripled. Even if ships heading to the West Coast of the United States do not pass through the Suez Canal, their average shipping costs have increased.
"The Red Sea crisis has multiple impacts, including rising costs, potential inflation, and delays and disruptions on a global scale, which in turn can interact with factors that exacerbate climate change, creating a vicious circle," Hoffman stressed. ”
