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Red Sea, Black Sea and Panama Canal: UNCTAD raises alarm on global trade disruptions

26 January 2024

The organization warns that escalating attacks on ships in the Red Sea are adding strain to shipping routes already hit by conflict and climate change.

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© Shutterstock/byvalet | A large container ship passes through the Suez canal.

The UN’s trade and development body, UNCTAD, has raised profound concerns over escalating disruptions to global trade. It says that recent attacks on ships in the Red Sea, combined with geopolitical tensions affecting shipping in the Black Sea and the impacts of climate change on the Panama Canal, have given rise to a complex crisis affecting key trade routes. UNCTAD’s head of trade logistics, Jan Hoffmann, outlined the organization’s detailed analysis of the situation at the . He underlined maritime transport’s critical role in international trade, noting that it is responsible for approximately 80% of the global movement of goods.

Disruptions in the Black Sea and Panama and Suez Canals

The Suez Canal, a critical waterway connecting the Mediterranean Sea to the Red Sea, handled approximately 12% to 15% of global trade in 2023. UNCTAD estimates that the trade volume going through the Suez Canal decreased by 42% over the last two months.
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