Home » Attacks in the Red Sea: the effects that the maritime crisis is having on global trade

Attacks in the Red Sea: the effects that the maritime crisis is having on global trade

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Attacks in the Red Sea: the effects that the maritime crisis is having on global trade

The UK Ministry of Defense shared footage of HMS Diamond launching missiles.

The security crisis in the Red Sea is leading to significant delays in the transportation of goods, impacting the availability of products in stores.

Attacks by Yemen’s Houthi rebels on merchant ships heading to the Suez Canal through the Red Sea have forced shipping companies to take longer and more expensive alternative shipping routes through southern Africa, causing delivery delays.

The attacks are reportedly aimed at punishing Israel for the war in Gaza, intensifying since mid-December. The recent repelling of “the largest attack” by Houthi rebels by the US and UK militaries, and the resolution by the UN Security Council demanding an immediate end to the attacks, highlight the severity of the situation.

Shipping companies including Maersk, Hapag-Lloyd, and Mediterranean Shipping Company (MSC) have been forced to take alternative routes to transport their containers, leading to delays and increased freight transportation costs.

The cost of moving containers on critical trade routes, particularly those affected by the crisis in the Red Sea, has risen dramatically in recent weeks. The impact of this diversion of shipping routes on the global supply chain could lead to price increases on products in the future.

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