Posted 1/24/2024, 12:00:00 AM
Global Trade Disrupted by Attacks on Ships in Red Sea
- Two months of attacks against ships in the Red Sea have disrupted global trade, adding costs and delays for companies worldwide
- Over 500 container ships are now taking longer routes around Africa instead of through the Suez Canal, tying up inventory and capacity
- Shipping costs have quadrupled on some routes and delays are expected to last for months more
- The economic impact is spreading, with carmakers and retailers citing production halts and inflation risks
- So far the Houthi attacks have done little damage but fears persist of a potential strike on an oil tanker or blockade of the strait