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Suez Canal transit volumes plummet by 37% in 2 weeks
Posted on January 22, 2024 |
Ongoing troubles in the Red Sea are making it harder for trade worldwide.
In the first 2 weeks of January, the Suez Canal saw a big 37% drop in ships passing through compared to the same time last year.
Attacks on commercial ships make shipping companies change their routes, avoiding the Red Sea which is super important for shipping and usually handles about 11% of the world's trade, with over 19,000 ships passing through every year.
The crisis in the Red Sea is causing problems for major industries like petroleum, chemicals, non-metallic minerals, mining, and agriculture.
Since November, rebels called Houthi have been attacking commercial ships in the Red Sea because of a conflict between Israel and Gaza.
This forces many shipping companies to either stop working in the area or take longer routes around Africa's Cape of Good Hope, leading to delays and higher costs.