The recent attack on Red Sea shipping by the Houthis has intertwined with existing geopolitical and climate-related challenges, severely disrupting global routes and having far-reaching economic and environmental implications. According to a new report from the United Nations** and the Conference on Development (UNCTAD), "Weathering the Dilemma", the disruption of the Red Sea, Black Sea and Panama Canal routes has had a huge impact on the world**.
At present, the Red Sea attack is the hottest topic in cross-border circles. As a result of Houthi attacks, the continued chaos in the Red Sea has seriously disrupted the sea route through the Suez Canal, changing the traditional oil and commodity routes. These issues exacerbate the impact on the world** and are expected to become a new challenge in the future.
In addition, the Panama Canal also faced navigation problems. Due to the drop in water levels, there is a certain degree of congestion on the routes through the area. As an important link between the Atlantic and Pacific Oceans, the navigation problems of the Panama Canal have caused a lot of trouble to the world**.
These uncontrollable shipping issues have put the long-term resilience of the global ** chain into a worrying situation, highlighting the fragility of the world's ** infrastructure at present. The report shows that last week's Suez Canal crossings decreased by 42% and weekly container ship crossings by 67% compared to the peak period. At the same time, the total volume of traffic in the Panama Canal is also down 49% from its peak.
These events have had a huge impact on the global economy, especially for developing economies. Judging from past data, the average container spot freight rate has been significant**, reaching a record weekly increase of $500 at the end of December. Since the beginning of December, the average spot freight rate for container shipments from Shanghai has more than doubled, with the increase to Europe more than tripling. In addition, although goods to the West Coast of the United States do not need to go through the Suez Canal, the increase is also above average.
UNCTAD warns that these disruptions could have far-reaching economic implications. The long-term disruption of container traffic threatens the global ** chain and can lead to late deliveries, rising costs, and inflation. In addition, due to the disruption of natural gas shipments and the surge in energy**, energy and ** could be affected, which in turn could affect global food**.
The report also highlights the environmental impact of these damages. For more than a decade, the shipping industry has been slowing down to reduce fuel costs and address greenhouse gas emissions. However, the disruption of the main ** route has led to an increase in vessel speed, which has led to increased fuel consumption and greenhouse gas emissions. Increased fuel consumption could lead to a 70% increase in greenhouse gas emissions from Singapore-Rotterdam round-trip flights, prompting the EU to update international** rules to mitigate the adverse climate impacts of shipping activities.