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Two major shipping arteries are blocked! Global shipping faces a “catastrophic blow”

Ting https://mp.weixin.qq.com/s/eibR4rrK2Ypmw9yqtjCb_w 2023-12-14 14:45:57

The Suez Canal and the Panama Canal are the two most important shipping arteries in the world, carrying more than half of global trade volume.

However, the current severe drought has restricted traffic in the Panama Canal, and intensified geopolitical conflicts have forced ships to bypass the Suez Canal. A large number of cargo shipments are at risk of being delayed, and freight rates have soared.

Recently, Marco Forgione, director of the British Import and Export Institute, said that if the conflict near the Suez Canal worsens further, coupled with Panama's restrictions, it will be a "catastrophic blow" to global shipping.

Since the beginning of this year, the drought caused by El Niño has continued to affect the Panama Canal reservoir system, reducing the supply of fresh water needed to operate the locks. The Panama Canal Authority has repeatedly reduced the number of ships passing through in a single day.

Due to the outbreak of the current Palestinian-Israeli conflict, ships passing through the Suez Canal are facing a greatly increased risk of attack. In order to ensure the safety of their crews, ships and cargo, many shipping companies have changed the routes of ships to avoid the Arabian Sea. and the Red Sea region.