Global Trade Declines Due to Red Sea Attacks

The German Kiel Institute, specializing in economics, announced on Thursday that "global trade has declined by 1.3 percent from November to December 2023, as attacks by armed groups on commercial ships in the Red Sea have led to a reduction in the volume of shipping through this vital area." The institute noted that "currently about 200,000 containers pass through the Red Sea daily, down from 500,000 in November." Julian Hentz, director of the Institute's Trade Policy Research Center, explained that "rerouting ships due to the attacks has resulted in ships taking up to 20 additional days on their journeys between production centers in Asia and consumer markets in Europe." He added in a statement, "This is also reflected in the declining trade figures in Germany and the European Union, as goods remain at sea and have not been unloaded at the ports on schedule."