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Suez Canal traffic plummets 66% as Houthi attacks paralyse global shipping

Global shipping giant A.P. Moller-Maersk has sounded the alarm over the severe disruption to global trade caused by ongoing attacks in the Red Sea by Iran-backed Houthi rebels. According to Reuters, the number of ships passing through the Suez Canal has plunged by 66% as companies increasingly divert vessels around Africa to avoid the volatile region.

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These disruptions have created a ripple effect across global supply chains, pushing up freight rates, and causing severe congestion at major ports in Asia and Europe. Maersk reported that the reconfiguration of shipping routes has led to infrastructure strain, delays, and shortages in capacity and essential equipment.

In a statement, Maersk highlighted that the consequences of the disruptions are not limited to trade between the Far East and Europe but extend across its entire global network.

The company had previously warned of a “cascading impact” on maritime traffic as the fallout from the Red Sea attacks intensifies.

Despite the ongoing turmoil, demand for container shipping remains strong. However, Maersk cautioned that the timeline for a return to normal operations remains highly uncertain. 

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