Attacks on shipping in the Red Sea are a blow to global trade
Until the Suez Canal opened in 1869, merchant ships in the Red Sea mostly carried coffee, spices and slaves. The waterway changed everything. So far in 2023 around 24,000 vessels have plied the passage, accounting for some 10% of global seaborne trade by volume, according to Clarksons, a shipbroker. That includes 20% of the world’s container traffic, nearly 10% of seaborne oil and 8% of liquefied natural gas.
So missile and drone attacks by Houthi militants in Yemen on ships passing through the narrow strait of Bab al-Mandab, which connects the Red Sea to the Gulf of Aden, apparently in support of Palestinians in Gaza, looks like the latest blow to the shipping industry—and to its customers. It has struck just as both groups try to return to normality after the upheavals of the pandemic and, more recently, troubles that include a drought that has restricted large vessels from passing through the Panama Canal for several months.
A dozen Houthi attacks in recent weeks and four more on December 18th pose an unacceptable danger to shipping. Container firms accounting for some 95% of the capacity that usually crosses Suez, including giants like Swiss-based msc and Denmark’s Maersk, have suspended services in the area. A few energy firms, such as bp and Equinor, have also temporarily stopped their ships from using the canal. As when the route was disrupted in 2021 after Ever Given, a giant container ship, ran aground and blocked the canal for six days, shipping companies are already rerouting vessels around Africa. This will extend journeys from around 31 to 40 days between Asia and Northern Europe, reckons Clarksons. Unless the route can safely reopen, delays and the inevitable disruption at ports as vessels arrive out of schedule will create disorder in the coming months.
2023-12-19 13:08:43
Article from www.economist.com
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