1. "Geopolitical Tensions and Rising Costs: The Impact of Attacks on Global Trade"
2. "The Vulnerability of Maritime Transport: A Closer Look at Geopolitics and Climate Change"
3. "The Suez Canal Crisis: How Attacks are Disrupting Global Shipping"
4. "Navigating Global Trade: The Challenges of Attacks and Counter Strikes"
5. "From Yemen to the Suez Canal: Understanding the Impact on International Shipping"

The recent attacks on ships passing through the Red Sea towards the Suez Canal by Houthi rebels have not only heightened geopolitical tensions but have also led to increased costs and greenhouse gas emissions, according to Jan Hoffmann, Chief of Trade Logistics at UNCTAD.

Maritime transport plays a crucial role in global trade, with the Suez Canal serving as a vital link for international shipping. The canal accounts for between 12 and 15 per cent of global trade and about 20 per cent of container trade. Disruptions in this key waterway have far-reaching consequences, as demonstrated by the grounding of the Ever Given container ship in March 2021.

Due to the risk of attacks, ships are now opting for the longer route around the southern tip of Africa, avoiding the Suez Canal. Container ship transits have decreased by 67 per cent compared to a year ago, with LNG carriers coming to a complete halt since January 16. This is a significant drop from the usual two to three gas carriers passing through the region daily.

The challenges faced by global shipping are further exacerbated by existing disruptions caused by the war in Ukraine and low water levels in the Panama Canal due to climate change impacts. The decrease in ship transits through the Panama Canal has led to a 36 per cent drop compared to a year ago and a nearly 62 per cent decrease compared to two years ago.

These disruptions have had a dramatic impact on global trade, leading to a surge in average container spot rates. Shipping costs from Shanghai have more than doubled since December 2023, with rates to Europe tripling and those to the US west coast also increasing, despite not passing through the Suez Canal.

The consequences of these disruptions are far-reaching, with rising costs, potential inflation, global delays, and disruptions, as well as worsening climate change contributors. It is clear that the attacks on shipping routes are not only a threat to global trade but also have significant environmental and economic implications.