The ongoing crisis in the Red Sea shipping route is causing disruptions in global trade, raising concerns about its impact on developing nations and global food prices. The United Nations Conference on Trade and Development (UNCTAD) warns that disruptions in grain shipments from Europe, Russia, and Ukraine pose risks to global food security.
UNCTAD has expressed deep concerns about the global trade disruption caused by the ongoing Red Sea crisis. The organization emphasized the adverse impact on developing nations, warning of repercussions on global food prices due to longer cargo routes and higher freight rates.
The U.N. trade body sounded an alarm Thursday that global trade is being disrupted by attacks in the Red Sea, the war in Ukraine, and low water levels in the Panama Canal. Jan Hoffmann, a trade expert at the United Nations Conference on Trade and Development known as UNCTAD, warned that shipping costs have already surged and energy and food costs are being affected, raising inflation risks.
Attacks against shipping in the Red Sea by Houthis are devastating for global trade and supply chains, already reeling under the impacts of the war in Ukraine and climate change-linked conditions in the Panama Canal, said the UN trade and development body, UNCTAD, on Thursday.