The global foreign trade landscape is undergoing significant changes due to recent geopolitical tensions, the impact of climate change, and the impact of disruptions to major shipping routes on specific shipping lanes.
Major foreign trade routes disrupted
The Suez Canal accounts for 12-15% of global trade, but trade patterns have changed over the past two months as the conflict in Ukraine has caused a 42% drop in trade. Meanwhile, the Panama Canal has also seen a 36% drop in total throughput due to severe drought, raising concerns about the canal's capacity under the impact of climate change.
Impact on specific waterways
The Red Sea crisis, marked by Houthi attacks, has led to a significant reduction in the number of ships passing through the Bab el-Mandeb Strait, particularly affecting the important foreign trade route connecting East Asia (especially from the Asia-Pacific, Middle East and South Asia regions) and Europe. In response, shipping companies iceland whatsapp number database are rerouting ships around the Cape of Good Hope, thus introducing complications to foreign trade routes to Europe. This rerouting practice adds a significant amount of mileage and days to each voyage and seriously affects the availability of shipping containers, leading to a potential "container crunch" in the affected regions.
Global Economic Impact