THE smooth flow of global maritime trade, vital for the transportation of goods worldwide, is facing unprecedented disruptions, reports UNCTAD (United Nations Conference for Trade and Development).
Recent events in two major trade routes, the Red Sea and the Panama Canal, have sent shockwaves through the international shipping industry, raising concerns about inflation, food security, and energy stability.
Since November 2023, escalating attacks on ships in the Red Sea have compounded disruptions in the Black Sea, mainly due to the ongoing conflict in Ukraine.
Additionally, droughts have plagued the Panama Canal, exacerbating the challenges faced by this crucial waterway.
The impact of these disruptions is evident in the decline in monthly transits through both the Suez and Panama canals.
Transits have decreased over 40 per cent compared to their peak periods, signaling significant obstacles for global trade.
The decline in the Suez Canal has been particularly pronounced in the last two months, while transits through the Panama Canal have been steadily decreasing over the past two years.
The consequences of these disruptions are far-reaching. Inflation rates are expected to rise as disruptions in supply chains lead to price hikes for essential goods.
Food security is threatened by delays in transportation, potentially resulting in shortages of perishable goods.
Moreover, energy stability is compromised as disruptions in maritime trade can affect the timely delivery of oil and gas supplies, leading to fluctuations in energy prices.
Addressing these challenges requires international cooperation and proactive measures.
Enhanced communication between nations and maritime organisations can facilitate the sharing of best practices for pollution mitigation and incident response.
SeaNews Turkey
Recent events in two major trade routes, the Red Sea and the Panama Canal, have sent shockwaves through the international shipping industry, raising concerns about inflation, food security, and energy stability.
Since November 2023, escalating attacks on ships in the Red Sea have compounded disruptions in the Black Sea, mainly due to the ongoing conflict in Ukraine.
Additionally, droughts have plagued the Panama Canal, exacerbating the challenges faced by this crucial waterway.
The impact of these disruptions is evident in the decline in monthly transits through both the Suez and Panama canals.
Transits have decreased over 40 per cent compared to their peak periods, signaling significant obstacles for global trade.
The decline in the Suez Canal has been particularly pronounced in the last two months, while transits through the Panama Canal have been steadily decreasing over the past two years.
The consequences of these disruptions are far-reaching. Inflation rates are expected to rise as disruptions in supply chains lead to price hikes for essential goods.
Food security is threatened by delays in transportation, potentially resulting in shortages of perishable goods.
Moreover, energy stability is compromised as disruptions in maritime trade can affect the timely delivery of oil and gas supplies, leading to fluctuations in energy prices.
Addressing these challenges requires international cooperation and proactive measures.
Enhanced communication between nations and maritime organisations can facilitate the sharing of best practices for pollution mitigation and incident response.
SeaNews Turkey
