Due to regional instability in the Red Sea, Egypt’s Suez Canal revenues plummeted by over 60% in 2024, resulting in a significant economic loss of approximately $7 billion. This decline highlights the vulnerability of the Suez Canal to regional conflicts and their impact on global trade, according to Reuters.
Numerous Attacks
The Houthi movement in Yemen has carried out numerous attacks on ships in the Red Sea since November 2023, targeting vessels passing through the crucial waterway.
These attacks, which began as a response to the Israeli-Palestinian conflict, have significantly disrupted global trade, forcing many vessels to reroute around the Cape of Good Hope, adding significant distance and cost to journeys.
The Houthi attacks in the Red Sea have significantly impacted global shipping. These attacks have forced shipping companies to reroute vessels around the Cape of Good Hope, increasing travel distances and significantly raising transportation costs. This disruption has had a ripple effect on global supply chains, leading to delays in deliveries and increased prices for consumers.
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Source: Reuters
