“Maritime traffic fell by 22% in one month”, even if it “did not completely stop”. This Tuesday, the European Union said it was concerned about the repercussions of attacks by Houthi rebels in the Red Sea.
The situation is not expected to improve in the coming months because many shipowners have since decided to take another maritime route, bypassing Africa via the Cape of Good Hope.
The Red Sea, which provides access to the Suez Canal, is essential for international trade, recalled Valdis Dombrovskis, the European Commissioner for Trade: “Between 12 and 15% of global traffic uses this maritime route as well as 30 to 35% of container ship”.
No impact on prices yet
Around 20,000 ships pass through the Suez Canal each year, the entry and exit point for ships passing through this area, linking Asia to Europe. However, the Houthi attacks from Yemen have not yet had an impact on the prices of goods, even if the price of their transport has increased, adds the commissioner. “The broader economic impact on consumer prices will depend a lot on the duration of this crisis,” he warns.
The European Commission must revise its economic forecasts next month and the impact of the situation in the Red Sea will be taken into account, Valdis Dombrovskis added.
The Europeans are studying the establishment of a mission to protect merchant ships in the Red Sea. EU foreign ministers discussed it on Monday at a meeting in Brussels. A decision could be announced before their next meeting on February 19. Several countries, including Italy, France and Belgium, have indicated their intention to participate.