The International Monetary Fund and the World Bank warned this Monday that the war Loop and attacks against merchant ships in the Red Sea pose a threat to the World economy.
The tension in this area of the world began in mid-November 2023 when the rebels Yemen's Houthis launched dozens of attacks against merchant ships in the Red Sea to exert economic pressure against Israel.
These tensions have led to hundreds of merchant ships having to divert from this route to avoid the danger of attacks and bombings that occur in the area.
In fact, according to the IMF, merchant shipping traffic through the Red Sea was reduced by 30 percent this year due to attacks by Yemen's Houthi rebels.
12 percent of world trade passes through that strait. That is, basically all products ranging from Asia to Europe has to follow that route, cross the Suez Canal, in Egypt, to empty into the Mediterranean.
By the way, the managing director of the IMF, Kristalina Georgievastated at the World Government Summit being held in Dubai that the war has already damaged the economies of Middle East and North Africa.
“What I fear most is a prolongation of the conflict because… the risk of it spreading increases,” Georgieva said.
“Right now we see a risk of spread in the Suez Canal,” he said, referring to the passage that connects the Mediterranean with the Red Sea, waters where Yemen's Houthi rebels launched a barrage of attacks against ships they consider linked to Israel. .
Yemeni rebels, a movement aligned with Iran, say they are acting in solidarity with the Palestinians in Gaza.
The president of the World Bank, Ajay Banga, stated at the same event that “what is happening in Gaza, but also the challenges of Ukraine (…) and the Red Sea” are the main challenges for the prospects of the world economy. .
The extra costs for world trade
With the Houthi attacks, hundreds of ships have had to divert some 6,000 kilometerssail through the south, go around the entire African continent to reach Europe, increasing the costs and rates of maritime freight.
According to figures collected by authorities as of last January, since the Houthi attacks began, Trade through the Suez Canal fell 42 percent in two months.
Weekly container ship transits have fallen by 67% compared to a year ago, oil tankers by 18% and dry bulk carriers – which transport, for example, grain or coal – by 6%.
Gas carriers, which transport liquefied natural gas (LNG), have stopped transiting the Suez Canal in Egypt, through which approximately 12% to 15% of global trade previously circulated.Average container shipping rates from Shanghai have risen 122% since the beginning of December and from this Chinese city to Europe they increased by 256% and to the west coast of the United States by 162%
INTERNATIONAL EDITORIAL
TIME
#conflict #Gaza #attacks #Red #Sea #threaten #global #economy