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World freight traffic in crisis due to attacks on cargo ships by Houthi rebels.
The freight traffic through the Suez Canal has almost halved.
39 percent decline in Suez Canal ships in the last two months.
London. Since Yemen’s Houthi rebels began their attacks on cargo ships in the Red Sea, freight traffic through the Suez Canal has almost halved. According to a media report, this major shipping lane connects producers in the Asia-Pacific region and western markets. The increase in threats along the Suez Canal, the world’s busiest sea route, has led to shipping delays and increased costs as ships have to take longer and alternative routes. The United Nations Conference on Trade and Development (UNCTAD) said the number of ships using the Suez Canal has fallen by 39 percent in the past two months.
Due to UNCTAD, there has been a 45 percent decline in freight traffic. Hoffman, the agency’s trade logistics chief, said that due to the ongoing wars and drought in the world, three major global maritime trade routes have been disrupted. The Black Sea route after Russia’s attack on Ukraine, the Suez Canal route due to the Israel-Palestine war and the low water level due to drought have affected the movement of ships in the Panama Canal.
UNCTAD’s head of trade logistics, Hoffman, said, ‘We are very concerned. We are seeing delays, rising costs, more greenhouse gas emissions. Pollution is increasing because ships are choosing longer routes and also traveling faster to compensate for the detours. It is noteworthy that the Suez Canal handles 12-15 percent of world trade and 25-30 percent of container traffic. Container shipments through the canal declined 82 percent in the week from the beginning of December to January 19.
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Hoffman, UNCTAD’s head of trade logistics, further said that this could have an impact on food prices around the world. Nearly half of the post-war increase in food prices in Ukraine was due to higher transportation costs. However, it may take some time for consumers in developed countries to see its effect.
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Tag: Russia, Suez Canal, world News, Yemen
first published : January 28, 2024, 11:38 PM IST
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