According to Economist, four of the world’s five largest container shipping companies, including CMA CGM, Hapag-Lloyd, Maersk and MSC, have suspended or suspended Sea services Red. After passing through the Suez Canal, transport ships are forced to move through this Red Sea area to reach the Indian Ocean and reach Asia, India…
This area is responsible for transporting moves about 12% of global trade volume and 30% of container traffic. Each year, about $1,000 billion in goods pass through here.
However, this vital trade route became dangerous after Houthi forces, operating in Yemen, began attacking ships. boat. The attacks have been going on for weeks, but have escalated rapidly in recent days.
Faced with great risks, the global shipping industry quickly stopped operations on the shipping route. download this. On December 15, Maersk and Hapag-Lloyd became two enterprise first announced the suspension of all services at the Red Sea. Then CMA CGM also stopped operations.
The above 4 companies contribute 53% of global container trade. Smaller companies as well as bulk carriers or tankers are also expected to suspend operations in the Red Sea.
According to Economist‘s assessment of the global economy, the prolonged closure of the Suez Canal will increase transportation costs and lengthen time. Conflict risk also causes waste insurance increases all these factors can be reflected in the price goods.
The Mediterranean – Suez transport route is about 9,000 km shorter than the Mediterranean – Cape of Good Hope and the travel time is shortened by about 2 weeks. If the Israel-Hamas conflict spreads across these two shipping routes, it could disrupt the world economy
In 2021, the Ever Given ship ran aground and blocked the canal for 6 days, worsening the situation. global supply chain crisis. According to some estimates, this incident caused 10 billion USD of goods to be stranded, causing about 1 billion USD in damage.
In addition, the crisis in the Red Sea could also affect security in the Sea. Nearby Arabia is responsible for transporting about a third of the sea’s oil supply.
“
