Houthi attacks plunge Suez Canal wheat shipments, upending global trade

The world is witnessing a significant disruption in its seaborne trade due to the escalating conflict in the Red Sea. The Houthi militant attacks causing this disturbance have led to a steep decline in shipments through the Suez Canal, impacting commodities from oil and gas to grains. Amid these unsettling events, the World Trade Organization (WTO) reports a nearly 40% drop in wheat shipments through the canal in the first half of January, a reduction amounting to 0.5 million metric tons. The Houthi group’s offensives on commercial vessels in the Bab al Mandeb Strait have forced significant shipping companies to reconsider their routes. These changes have led to a drop in wheat shipments through the ever-vital Suez Canal. Before the attacks, alternative shipping routes accounted for about 3% of total trade. However, following the Houthi strikes, this figure has skyrocketed to an alarming 42%. These disruptions have also resulted in a doubling of insurance rates for ships using the ...