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Africa

Africa: The Red Sea Shipping Crisis Is Having a ‘Dramatic’ Impact, Warns Logistics Chief

todayJanuary 26, 2024 2

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Attacks against shipping in the Red Sea by Houthis are devastating for global trade and supply chains, already reeling under the impacts of the war in Ukraine and climate change-linked conditions in the Panama Canal, said UN trade and development body, UNCTAD, on Thursday.

According to Jan Hoffmann, Chief of Trade Logistics at UNCTAD, the attacks are not only adding to geopolitical tensions but also raising costs and leading to increased greenhouse gases (GHG) emissions.

“Maritime transport is really the lifeline of global trade,” he said, speaking to journalists at the UN Headquarters in New York via video link from Geneva.

“These disruptions underline their vulnerability to geopolitics, tensions, and climate changes.”

Attacks and counter strikes

Also known as Ansar Allah, Houthi rebels control large parts of Yemen, including the Red Sea coast.

Since November, they have intensified attacks against ships passing through the narrow waters towards the Suez Canal, claiming they have been targeting those heading to Israeli ports.

In response, the United States, alongside the United Kingdom and other countries, launched airstrikes against the group at sea and now on land, further increasing tensions in the region.

A crucial link

The Suez Canal is a vital link for international shipping and accounts for between 12 and 15 percent of global trade and about 20 percent of container trade.

Disruptions there have a catastrophic, cascading effect worldwide, as seen during the March 2021 grounding of the vast Ever Given container ship which blocked the waterway for days.

Given the risk of attacks, ships are avoiding the route, traveling around the much longer passage around the southern tip of Africa.