United Nations. Warning about the impact of the Red Sea Conflict on the international economy, the United Nations trade body UNCTAD has said that international trade through the Suez Canal has decreased by 42 percent. . Energy exports in India are being affected during the last two months. John Hoffman, head of UNCTAD’s trade logistics branch, told the media on Thursday that ‘We are concerned that attacks on Red Sea ships are increasing barriers to global trade.’ He warned of the danger of inflation, saying that food prices could have a major impact due to long trade distances and high freight rates. Because ships are avoiding the Red Sea and Suez Canal.
Jan Hofmann, head of UNCTAD’s trade logistics branch, said UNCTAD estimates there has been a 42 percent decline in ships using the Suez Canal since November due to attacks by Houthi rebels on ships in the Red Sea region. He said that big companies in the shipping industry are temporarily stopping the use of the Suez Canal, they are looking for other routes. He said that some energy exports from Europe to India take place through the Suez Canal.
12 to 15 percent of world trade through Suez Canal
The Suez Canal connects the Mediterranean Sea with the Red Sea. It is a vital link connecting Asia and East Africa to Europe and beyond and handled about 12 to 15 percent of world trade last year. To avoid the Red Sea and the Suez Canal, ships have to go around the Cape of Good Hope at the southern tip of Africa. Hoffman said the Red Sea crisis is more serious than the problems at the Panama Canal and the Black Sea.
Drone Attack: Drone attack on an Indian flagged ship, who carried out this attack in the Red Sea?
Water reduced in Panama Canal due to drought
Whereas the Black Sea, a major route for export of food grains from Ukraine, has been affected by the war. The Panama Canal has been affected by problems related to climate change. Due to drought, water in the canal has fallen to its lowest level in decades, reducing the number and size of ships passing through it. Hoffman said disruptions to major global trade routes have already caused energy prices to rise.
,
Tag: economy, inflation, Suez Canal, United Nations
first published : January 26, 2024, 8:13 PM IST
