The UN’s trade and development body, UNCTAD, issues a stark warning on escalating disruptions to global trade. Recent attacks on Red Sea ships, Black Sea tensions, and climate impacts on the Panama Canal created a complex crisis affecting key trade routes.
The Suez Canal, handling 12-15 percent of global trade, has seen a 42 percent decline in the last two months. Geopolitical tensions and the Ukraine conflict reshape oil and grain trades. The Panama Canal faces a 36 percent transit reduction due to severe drought, raising concerns about long-term climate impacts. Major players suspend Suez transits, causing a 67 percent drop in container ship transits. Rising freight rates, insurance premiums, and increased emissions compound environmental concerns.
Prolonged interruptions pose threats to global supply chains, impacting energy prices, food security, and developing countries. UNCTAD emphasises collective efforts for sustainable solutions amidst trade vulnerabilities.
