Weekly transits going through the Suez Canal decreased by an estimated 42% over the last two months, the UN Conference on Trade and Development (UNCTAD) said in a statement.
The intergovernmental organization within the UN Secretariat said it is concerned over the rising disruptions in global trade, especially due to geopolitical tensions affecting shipping in the Black Sea, recent attacks on shipping in the Red Sea affecting the Suez Canal, and the impact of climate change on the Panama Canal.
“The recent attacks on Red Sea shipping, coupled with existing geopolitical and climate-related challenges, have given rise to a complex crisis affecting key global trade routes,” it said.
“The crisis in the Red Sea, marked by Houthi-led attacks disrupting shipping routes, has added another layer of complexity. Major players in the shipping industry have temporarily suspended Suez transits in response. Notably, container ship transits per week have plummeted by 67% compared to a year ago, with container carrying capacity, tanker transits, and gas carriers experiencing significant declines,” it added.
The organization said avoiding the Suez Canal causes increased expenses in a number of ways, such as extended cargo travel distances, higher trade costs, rise in food and energy prices, and a surge in greenhouse gas emissions.
“The price per day of shipping and insurance premiums have surged, compounding the overall cost of transit.
Additionally, ships are compelled to travel faster to compensate for detours, burning more fuel per mile and emitting more CO2, further exacerbating environmental concerns,” it explained.
UNCTAD noted that maritime transportation is responsible for more than 80% of the global movement of goods in international trade.—AA
