[Freight Weekly] Red Sea Shipping Drops 66 Percent

😭Red Sea shipping drops a whopping 66 percent😭

Data from the Office of National Statistics (ONS), in the UK, indicates that shipping through the Suez Canal and the Red Sea corridor has decreased by at least 66 percent due to attacks by Houthi militants. What you need to know:

• An ongoing crisis of the attacks carried out by Iranian-backed Houthi militants off the coast of Yemen has stifled international trade through the region significantly, based on the ONS data and other information.

• According to observers, there has been a “quasi-blockade” to avoid the Red Sea throughout the global trade war. These diversions are causing capacity issues in terminals worldwide, especially in ports in Europe.

• Diversions have also contributed to rising emissions due to the extra nautical miles box ships put on to transit around the Cape of Good Hope.

• The port of Jeddah, in Saudi Arabia, is reporting a two-thirds drop in the calls from the top ten ocean carriers: 67 percent, per The Loadstar.

• The International Maritime Organization has warned the Yemeni Houthi rebels and Iran of violating international trade in the region.

• Lloyd’s List reports that Houthi militants are expected to step back up the attacks on ships navigating through the Suez to the Red Sea. The group posted to their official Telegram channel: “Yemeni armed forces will escalate their operations against Zionist navigation and those associated with it in the Red and Arab Seas and the Indian Ocean.”

Bottom line: The attacks on shipping in the Red Sea and Suez Canal continue to drive costs and diversions and carry with them unintended consequences for global trade. These harms include rising geopolitical tensions and harm to the climate due to increased emissions from diverting from the vital trade artery.

CONTEXT: Suez Canal shipping chaos: Iran-linked Houthi terrorist attacks spark inflation concerns

Quote of the Day: Secretary-General of the International Maritime Organization…

“I once again call for collective action to fortify the safety of those who serve at sea. International trade depends on international shipping and international shipping cannot go on without seafarers.”

- IMO Secretary-General Arsenio Dominguez 

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📰  WHAT ELSE IS GOING ON IN FREIGHT

🏃 Postal Service moving daily air cargo volumes to UPS from FedEx: The United States Postal Service announced that it is officially shifting to UPS air cargo, despite the FedEx contract not expiring until September 29, 2024.

🪜Port of Oakland sees volume climb in March 2024: The Port of Oakland saw a climb in container volumes: 202,816 TEU passing through the containerport.

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