[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109538-en":3,"doc-seo-109538-105":31,"detail-sidebar-cat-0-en-105":93},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},109538,8796095461610,"Oliver","https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c",8,"Research & Report","The Deepening Red Sea Shipping Crisis - Impacts and Outlook - Issue 2","The Red Sea crisis has become a major flashpoint reshaping Middle East conflict spillovers into global trade. By end-2024, vessel traffic through Suez and Bab El-Mandeb fell by about three-fourths, triggering detours via the Cape of Good Hope and pushing navigation volumes up more than 50 percent. Port activity across the Asia–Europe corridor has split: Western Mediterranean hubs gain while Eastern hubs decline, with longer supplier delivery times in Europe. Maritime disruption also raises shipping costs, while environmental fallout from tanker attacks contaminates habitats, harms fisheries, and damages undersea fiber optic cables. The brief assesses evolving risks and potential recovery under ceasefire and attack-limiting conditions, including trade growth scenarios for 2025.","Public Disc losure Authorized  \nThe Deepening Red Sea Shipping Crisis: Impactsand Outlook 1  \nMENA FCV ECONOMIC SERIES BRIEF  \nPub lic Disc losure Authorized  \nSummary: The Red Sea crisis has emerged as a critical flashpoint of the conflict in the Middle East, upending global trade and maritime transport, port activity in the MENA region, and ecological balance of the Red Sea. By end-2024, about a year after the onset of the crisis, vessel traffic through the strategic Suez Canal and Bab El-Mandeb Strait—which used to carry 30 percent of world container traffic—had plummeted by three-fourths, forcing ships to detour around the Cape of Good Hope, where navigation volumes surged by over 50 percent. Meanwhile, the impact has not only deepened but also spread geographically: the Strait of Hormuz, the world’s most critical oil passageway anda chokepoint between the Arabian Gulf and the Gulf of Oman, has not been immune to the spillover effects, with maritime traffic dropping 15 percent as the conflict casts its shadow over the region, partly due to trade being diverted to land routes.  \nTrade diversions have reshaped port trade activity along the Asia-Europe corridor, altering the fortunes of key hubs. Western Mediterranean hubs are thriving on redirected trade, while their Eastern Mediterranean counterparts face steep declines. South Asian ports, like Colombo, have seized the opportunity, capturing more regional cargo. The disruption has sent shockwaves through global supply chains, resulting in longer supplier delivery times, especially in Europe. Simultaneously, Gulf countries have adopted alternative solutions, such as a newly established land route connecting Persian Gulf ports to Haifa, circumventing conflict zones .  \nThe disruption of maritime transportation in the Red Sea has driven up global shipping costs, with the sharpest increases observed on routes directly affected by the hostilities. However, higher freight rates have had muted effects on inflation so far, partly owing to subdued  \nIssue \\#2 | February 2025  \nglobal demand, lower global commodity prices, and the adequate stock of inventories.  \nThe Red Sea has not only become a geopolitical flashpoint but also a site of growing environmental catastrophe. Oil spills resulting largely from the attacks on tankers have contaminated critical marine habitats, threatening biodiversity and undermining local livelihoods. The fragile ecosystem of the Red Sea, home to vibrant coral reefs and unique marine species and tourist sites, faces severe degradation. Additionally, fishing—a cornerstone of subsistence for coastal communities—has decreased due to safety concerns and environmental damage. The crisis also resulted in distressed ships damaging critical undersea fiber optic cables, disrupting vital telecommunications infrastructure and underscoring the ongoing threat to global connectivity.  \nWith the ceasefire between Israel and Hamas taking effect on January 19, 2025, and the Houthis stating they will limit attacks on commercial vessels to Israel-linked ships, the potential for reduced disruptions to global maritime trade has increased. A resolution of the crisis by May 2025 would result in shipping trade growth by around 6 percent in Red Sea neighboring countries and around 5 percent for the European Union, compared to the baseline scenario that the crisis were to last until October 2025. In turn, therebound of trade would help overall economic recovery in the region. This peace dividend would be even greater if the crisis were to end quickly, in February 2025.  \n Persistent Conflict in the Red Sea Region  \nThe shipping crisis in the Red Sea region has deepened. Particularly around Yemen, the region remains a complex flashpoint for conflict since the onset of the  \n1 The Brief is prepared under the guidance of Eric Le Borgne (Practice Manager, EMNMT) by a team comprising Željko Bogetić(Lead Economist, EMNMT), Luan Zhao (Senior Economist, EMNMT), Daria Ulybina (Economist, ","cbCaigHgyBBNU5hu","https://ap.wps.com/l/cbCaigHgyBBNU5hu","pdf",6759550,5,1,16,"English","en",105,"# Summary\n## Persistent Conflict in the Red Sea Region\n## Trade and Port Activity Impacts\n## Shipping Costs and Inflation Effects\n## Environmental and Connectivity Impacts\n## Outlook and Recovery Scenarios","[{\"question\":\"How much did Red Sea vessel traffic decline through Suez and Bab El-Mandeb by end-2024, and what routing changes followed?\",\"answer\":\"Traffic fell by about three-fourths. Many ships detoured around the Cape of Good Hope, where navigation volumes increased by more than 50 percent.\"},{\"question\":\"What effects did the crisis have on port activity along the Asia–Europe corridor?\",\"answer\":\"Western Mediterranean ports benefited from redirected trade, while Eastern Mediterranean ports faced sharp declines. South Asian ports such as Colombo captured more regional cargo, and Europe experienced longer supplier delivery times.\"},{\"question\":\"Which environmental and infrastructure damages are highlighted, and why do they matter?\",\"answer\":\"Attacks on tankers caused oil spills that contaminated marine habitats and threatened biodiversity and livelihoods. The crisis also included distressed ships damaging undersea fiber optic cables, disrupting telecommunications and connectivity.\"}]","The Deepening Red Sea Shipping Crisis - Impacts and Outlook - Issue 2 | PDF",1784480917,40,{"code":4,"msg":32,"data":33},"ok",{"site_id":25,"language":24,"slug":34,"title":13,"keywords":35,"description":14,"schema_data":36,"social_meta":88,"head_meta":90,"extra_data":92,"updated_unix":29},"the-deepening-red-sea-shipping-crisis-impacts-and-outlook-issue-2","",{"@graph":37,"@context":87},[38,55,70],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,49,52],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":48},"https://docshare.wps.com/document/","Document",2,{"item":50,"name":12,"@type":44,"position":51},"https://docshare.wps.com/document/research-report/",3,{"item":53,"name":13,"@type":44,"position":54},"https://docshare.wps.com/document/the-deepening-red-sea-shipping-crisis-impacts-and-outlook-issue-2/109538/",4,{"url":53,"name":13,"@type":56,"author":57,"headline":13,"publisher":59,"fileFormat":62,"inLanguage":24,"description":14,"dateModified":63,"datePublished":64,"encodingFormat":62,"isAccessibleForFree":65,"interactionStatistic":66},"DigitalDocument",{"name":9,"@type":58},"Person",{"url":42,"name":60,"@type":61},"DocShare","Organization","application/pdf","2026-07-30","2026-07-19",true,{"@type":67,"interactionType":68,"userInteractionCount":20},"InteractionCounter",{"@type":69},"ViewAction",{"@type":71,"mainEntity":72},"FAQPage",[73,79,83],{"name":74,"@type":75,"acceptedAnswer":76},"How much did Red Sea vessel traffic decline through Suez and Bab El-Mandeb by end-2024, and what routing changes followed?","Question",{"text":77,"@type":78},"Traffic fell by about three-fourths. Many ships detoured around the Cape of Good Hope, where navigation volumes increased by more than 50 percent.","Answer",{"name":80,"@type":75,"acceptedAnswer":81},"What effects did the crisis have on port activity along the Asia–Europe corridor?",{"text":82,"@type":78},"Western Mediterranean ports benefited from redirected trade, while Eastern Mediterranean ports faced sharp declines. South Asian ports such as Colombo captured more regional cargo, and Europe experienced longer supplier delivery times.",{"name":84,"@type":75,"acceptedAnswer":85},"Which environmental and infrastructure damages are highlighted, and why do they matter?",{"text":86,"@type":78},"Attacks on tankers caused oil spills that contaminated marine habitats and threatened biodiversity and livelihoods. The crisis also included distressed ships damaging undersea fiber optic cables, disrupting telecommunications and connectivity.","https://schema.org",{"og:url":53,"og:type":89,"og:title":13,"og:site_name":60,"og:description":14},"article",{"robots":91,"canonical":53},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":94},[95,99,103,107,111,116,120,123,128,131,135],{"id":21,"doc_module":4,"doc_module_name":47,"category_name":96,"show_sort_weight":97,"slug":98},"Story & Novel",90,"story-novel",{"id":48,"doc_module":4,"doc_module_name":47,"category_name":100,"show_sort_weight":101,"slug":102},"Literature",80,"literature",{"id":54,"doc_module":4,"doc_module_name":47,"category_name":104,"show_sort_weight":105,"slug":106},"Exam",70,"exam",{"id":20,"doc_module":4,"doc_module_name":47,"category_name":108,"show_sort_weight":109,"slug":110},"Comic",60,"comic",{"id":112,"doc_module":4,"doc_module_name":47,"category_name":113,"show_sort_weight":114,"slug":115},6,"Technology",50,"technology",{"id":117,"doc_module":4,"doc_module_name":47,"category_name":118,"show_sort_weight":30,"slug":119},7,"Healthcare","healthcare",{"id":11,"doc_module":4,"doc_module_name":47,"category_name":12,"show_sort_weight":121,"slug":122},30,"research-report",{"id":124,"doc_module":4,"doc_module_name":47,"category_name":125,"show_sort_weight":126,"slug":127},9,"Religion & Spirituality",20,"religion-spirituality",{"id":126,"doc_module":4,"doc_module_name":47,"category_name":129,"show_sort_weight":126,"slug":130},"World Cup","world-cup",{"id":132,"doc_module":4,"doc_module_name":47,"category_name":133,"show_sort_weight":132,"slug":134},10,"Lifestyle","lifestyle",{"id":136,"doc_module":4,"doc_module_name":47,"category_name":137,"show_sort_weight":20,"slug":138},19,"General","general"]