Red Sea cargo volumes down by 21% - BIMCO

Cargo volumes transiting through the Gulf of Aden and the Red Sea dropped 21% year-on-year during the first seven weeks of this year, global shipping association BIMCO reported.

PHOTO: Ships passing through the Suez Canal. Getty Images

So far in February, the total number of vessels passing through the Gulf of Aden is half of what it was last year, BIMCO said. Shipping through the Suez Canal this month has decreased by 37% year-on-year, it added.

The number of vessels calling at Yemen’s Port of Aden as well as containers transiting the Suez Canal has “significantly declined” because of constant firing by Yemen-based Houthi militants at commercial vessels in the critical waterways and the Bab al-Mandeb Strait since November 2023.

The Houthi militia claimed these attacks as a retaliation to Israel’s refusal of a ceasefire in Gaza. This has forced several shipping companies to re-route vessels via the Cape of Good Hope and put some upward pressure on oil [Brent] prices.

“In December [2023], most container and gas carriers started avoiding the region and by January, a significant reduction in transits was seen across most sectors,” BIMCO stated.

Some countries unaffected by the Red Sea crisis

Countries like Jordan, Egypt, and major oil producers like Saudi Arabia have the flexibility to bypass the Red Sea crisis by transporting cargo through Dammam in the Persian Gulf or the Mediterranean ports of Alexandria and Damietta.

However, other countries have scarce alternatives to the Red Sea trade route, the shipping association said.

Shipments to Sudan, Somalia, Yemen, and Eritrea have also gone down by 25% year-on-year in 2024, it said. “Djibouti is a noteworthy exception, where shipments have remained stable,” BIMCO added.

By Aparupa Mazumder 

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