During the first seven weeks of 2024, cargo volumes to and from ports in the Gulf of Aden and Red Sea declined 21% y/y. The number of ships arriving in these ports significantly declined as merchant shipping increasingly avoided transiting through the region due to concerns.
Since November 2023, Houthi forces have attacked ships in the Red Sea and Gulf of Aden. In December, most container and gas carriers started avoiding the region and by January, a significant reduction in transits was seen across most sectors.
So far in February, the number of ships transiting through the Gulf of Aden and the Suez Canal is 50% and 37% lower than last year respectively. Container ship transits are down by 70% through the Gulf of Aden and the Suez Canal. Prior to the attacks, shipments through the Suez Canal accounted for roughly 10% of global trade.
The attacks on ships in the Red Sea are directly affecting the ability of countries in the region to import and export cargo. Even where alternative export routes exist, these often come at a higher cost, longer duration and with constraints to capacity.
Source: BIMCO
