Global trade fell 1.3% in December month-over-month as attacks on transport ships through the Red Sea continue to cause delays and losses, according to German research institute IFW Kiel.
The drop in global trade follows a decline in the number of container ships using the Red Sea in their route, falling from 500,000 containers per day in the month of November to only around 200,000 containers per day in December, according to a report from IFW Kiel. Top shipping companies have diverted their routes to avoid Yemen-based Houthi attacks backed by Iran since Oct. 7, 2023.
“The detour of ships due to the attacks in the Red Sea around the Cape of Good Hope in Africa means that the time it takes to transport goods between Asian production centers and European consumers is significantly extended by up to 20 days,” Julian Hinz, director of IFW Kiel’s Trade Policy…
