The crisis in the Suez and Panama Canals affects world trade

He world trade is currently under the influence of a perfect storm as three crises coincide in time: disruption of routes to Ukraine due to the war, practically closing the channel Suez by bombing the Red Sea and drastically reducing traffic in Panama Canal.

This was revealed at a telematic press conference at the UN headquarters. Jan Hoffmanhead of the technology department of UNCTAD, the United Nations Trade and Development Organization.

Hoffman explained that the Panama Canal currently has 36% less traffic than last yearand 62% less than the previous one due to the drop in the water level due to the drought in the area, i.e. due to causes that are exclusively related to climate changes.

The tension at sea has been added to this crisis, which has no end in sight Redthrough which a 20% of the world’s containers and crucial for the link between Europe and Asia. Container traffic is currently in decline 67% compared to the year beforeand since large container ships are the most affected, the impact on the total amount of goods represents an even higher percentage.

Cargo ships carrying oil are now 77 percent smaller than a year ago, and those carrying gas — which would suffer even more if their tanks were fired upon — have avoided the Red Sea route entirely since Jan. 16, Hoffman said.

That drastic drop in traffic is reflected in price increases – due to unforeseen parking or greater risk being taken on by insurers – in major ports such as Shanghai, where prices for shipping companies generally rose 122% from December to last year. Friday, a percentage that rises to 256% in the case of ships bound for Europe.

Another unintended effect of the virtual closure of the Red Sea and the reduction of capacity in Panama is the lengthening of shipping routes, as it forces large shipping companies to bypass the sea South America or Africa with the consequent additional consumption of tons of fuel and impact on greenhouse gases.

Hoffman cited as an example the first effects of the war in Ukraine, which are reflected in the food inflation suffered by third world countries in particular, and pointed out that if the current crisis continues, higher global inflation and delays can be taken for granted. logistics chain in general, like those seen during the covid pandemic.