"Red Sea Tensions: Impact of Houthi Attacks on Global Trade and Prices"

Houthi attacks on ships in the Red Sea are causing disruptions to global trade, leading to delays and driving up costs for shipping goods. The attacks, combined with pandemic-related port logjams and the Russia-Ukraine conflict, are forcing traffic away from the Suez Canal and around the tip of Africa. This disruption is affecting various industries, including automotive, retail, and manufacturing, and could potentially lead to a surge in goods inflation. The situation is exacerbated by low water levels in the Panama Canal and the upcoming Lunar New Year holiday in China, adding further strain to the global shipping industry.