The International Monetary Fund (IMF) reported on Wednesday that maritime transportation of cargo containers through the Red Sea has decreased by nearly 30% on an annual basis. This is attributed to the increased attacks by Houthi rebels against commercial ships off the coast of Yemen.
“The majority of the activity in the Red Sea pertains to maritime container transportation, which has decreased by almost 30%,” stated Jihad Azour, Director of the IMF’s department responsible for the Middle East and Central Asia. He added, “The decline in trade accelerated at the beginning of the year.”
According to the PortWatch platform of the IMF, the volume of transportation through the Suez Canal, which connects the Red Sea to the Mediterranean, declined by 37% in the first two weeks of January compared to the same period in 2023.
This decline is directly linked to the attacks launched by Houthi rebels, who control almost all of northern Yemen, on ships in the Red Sea and the Gulf of Aden. These attacks have disrupted navigation in this strategically vital area, through which approximately 12% of global trade normally passes.
Their attacks have prompted major shipping companies to instruct their vessels to avoid the maritime route through the Suez Canal, opting instead to circumnavigate Africa which has resulted in significantly more time-consuming and costly maritime transportation.
The United States, a key ally of Israel, has deployed warships in the Red Sea to protect commercial shipping and has been launching strikes against positions of the Houthi movement since last month. However, these actions have not brought the desired results.
Azour further noted that the impact of the Israel-Palestinian conflict and the Palestinian Islamist movement in the Gaza Strip and the occupied West Bank is “enormous.”
In 2023, the Palestinian territories’ GDP contracted by about 6%, as per revised IMF estimates. The economy is expected to further shrink in 2024 unless there is a quick resolution to hostilities and reconstruction.
Source: tovima.com
Latest News
Greenhouse Gas Emissions: 4% Decrease in EU, 0.3% Rise in Greece in Q4 2023
The EU's GDP remained stable with a marginal 0.2% increase in fourth quarter of 2023
HEREMA CEO: High Expectations from Natgas Exploration Off Crete
3D seismic surveys were conducted in the two offshore blocks west and southwest of Crete by a consortium comprised of ExxonMobil and HelleniQ Energy
EC Spring Forecast: Greek GDP at 2.2 in 2024, 2.3% in 2025
Besides Greek GDP inflation is expected to drop by a substantial 2.4% in 2024, settling at 2.8% from 4.2% in 2023 with 2025 recording a further decline to 2.1%
EBRD Raises Outlook for Greek GDP to 2.3% in 2024, 2.6% in 2025
Key downside risks remain, associated with possible delays in deploying Recovery and Resilience Facility (RRF) funds and weaknesses in key export markets and tourism source countries
Real Estate Insights: Athens’ Top Areas with the Highest Yields
In the first quarter of 2024, Korydallos in the Piraeus region and the burgeoning Attiki Square retain their top spots with impressive yields of 6.3%
ELSTAT: Inflation at 3.1% in April
Olive oil (63.7%), fruit (11.6%), fish (10.6%), and mineral water (12.5%) registered the highest increases annually
Greek Sunlight CEO Joins Industry Titans at Choose France Summit
At the heart of the "Choose France Summit" was the discussion surrounding the production of lead-acid and lithium-ion batteries, crucial for the green transition and storage of renewable energy.
Insights into Greece’s Real Estate Landscape; Consumer Expectations and Challenges
The study indicates that while 66% of Greeks find recent real estate price hikes concerning and liken them to a "bubble," over half (56%) still anticipate further increases.
Athens in Top 10 Best Value City Breaks
Every year, Post Office Travel Money compares the costs of short breaks in cities across Europe for UK holidaymakers
Athens Int’l Airport: Americans Lead Total Passenger Traffic in Q1
According to the data processed by AIA, the top 10 in foreign arrivals are dominated by Americans, followed by the British and Germans. Other top nationalities include Cypriots, Italians, French, Dutch, Israelis, Poles, and Turks.