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Home » Nation » Current Affairs
DEVELOPING NATIONS VULNERABLE TO RED SEA CRISIS: UNCTAD
Current Affairs
Sangeetha G
23 February 2024 8:20 AM
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Chennai: With Suez and Panama canal transits dropping more than 40 per cent,
developing countries are particularly vulnerable to the trade disruptions, finds
UN’s trade body.
UNCTAD estimates that transits passing the Suez Canal decreased by 42 per cent
compared to its peak. With major players in the shipping industry temporarily
suspending Suez transits, weekly container ship transits have fallen by 67 per
cent, and container carrying capacity, tanker transits, and gas carriers have
experienced significant declines. Meanwhile, total transits through the Panama
Canal plummeted by 49 per cent compared to its peak.
Also Read - 55 AAP MLAs Meet Sunita, Say Jailed Kejriwal Should Not Resign
Growing significantly since November 2023, the surge in the average container
spot freight rates registered the highest-ever weekly increase of $500 in the
last week of December.
Average container shipping spot rates from Shanghai more than doubled at 122 per
cent since early December, growing more than threefold to Europe, and 162 per
cent to the United States West Coast.
UNCTAD underscores the far-reaching economic implications of prolonged
disruptions in container shipping, threatening global supply chains and
potentially delaying deliveries, causing higher costs and inflation. The full
impact of higher freight rates will be felt by consumers within a year.
Also Read - UP: Hearing in 2018 Defamation Case Against Rahul Gandhi Postponed
to April 12
Developing countries are particularly vulnerable to these disruptions and UNCTAD
remains vigilant in monitoring the evolving situation.
It emphasizes the urgent need for swift adaptations from the shipping industry
and robust international cooperation to manage the rapid reshaping of global
trade. The current challenges underscore the exposure of global trade to
geopolitical tensions and climate-related challenges, demanding collective
efforts for sustainable solutions, especially in support of countries more
vulnerable to these shocks.
( Source : Deccan Chronicle )
unctad suez canal Panama canal Red Sea Crisis
India Southern States Tamil Nadu Chennai (Madras)
About the AuthorSangeetha G
Sangeetha G is Assistant Editor with Deccan Chronicle and has worked for over 20
years in visual media, news agencies and newspapers. She writes about economy,
business and finance-related topics
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