Timber supply chains face disruption amid Red Sea crisis

Posted on April 29, 2024   |  

The global shipping industry calls for UN intervention to safeguard commercial vessels in the Middle East amid increased seizures by Iranian militia.

Rising tensions prompt a shift away from the Suez Canal, threatening supply chains and raising consumer prices, including for timber, amidst declining global inflation.

China, India, and the ASEAN bloc explore Northern Sea Routes with Russia to mitigate risks amid ongoing conflicts in the Gaza Strip.

The Northern Sea Route (NSR) offers substantial time savings, halving sailing time between Russia's European Ports and Asian ports such as Shanghai.

Escalating attacks by Iranian-backed Houthi rebels on vessels in vital shipping routes raise international concerns.

The US, Australia, and eleven other affected nations condemn the attacks as unlawful and destabilizing.

Over 100 freight companies, including industry leaders like Maersk and Hapag-Lloyd, halt movements through the Red Sea as insurance premiums soar.

France's CMA CGM responds to the crisis by doubling shipping rates from Asia to Europe, impacting global trade and countries heavily reliant on European connections like Australia and New Zealand.