The Red Sea attacks: A regional crisis with global repercussions

Its role in global logistics and international trade can therefore hardly be overstated. Here are some figures and facts that impressively demonstrate the region’s importance to the global economy:

• According to the Suez Canal Authority, an average of 51.5 ships per day pass through the canal each year.
• Approximately 12 percent of global trade passes through the Suez Canal. This underscores the importance of the Red Sea as a major transportation route.
• The canal is particularly important for oil transport: Approximately 30 percent of the world’s container ship cargo and about 22 percent of the world’s crude oil volume pass through the Suez Canal.
• The Red Sea is surrounded by countries with substantial oil reserves. Saudi Arabia, which borders the Red Sea, possesses approximately 17 percent of the world’s proven oil reserves.
• The canal contributes significantly to Egypt’s national income. Annual revenues from the Suez Canal amount to approximately US$5.6 billion.

The problem: Because the Houthi rebels are continuing their attacks in the Red Sea, container ships traveling between Asia and Europe are now having to navigate around the southern tip of Africa instead of through the Suez Canal. This detour is delaying vital deliveries and costing a great deal of money. Unfortunately, there is currently no end to the crisis in sight. On the contrary, there are daily reports of attacks, and it remains to be seen how effective the protection provided by the US-led coalition in the Red Sea will be.

As a logistics provider, we are, of course, feeling the effects of the crisis directly. The market is experiencing significant turmoil, and numerous ships are unable to unload cargo as planned. This is resulting in longer transit times and a shortage of empty cargo, which we urgently need for all other shipping areas as well. The crisis is therefore not limited to the Red Sea but is affecting logistics worldwide.

Do you have questions about our ocean freight solutions or would you like to learn more about Skyline Express? Our ocean freight team will be happy to advise you personally.