Red Sea Chaos: Experts Warn of Economic Impact on Shipping and Trade
Originally Published 1 year ago — by CNBC
Trade experts and the world's largest shipping company warn Congress about the economic impact of the Red Sea chaos caused by Houthi rebel attacks, leading to increased freight prices, vessel diversions, supply chain delays, and inflation. The attacks have disrupted global trade, with companies like Maersk and MSC altering shipping routes and experiencing vessel attacks. This has led to increased costs for businesses and consumers, impacting various industries and prompting some retailers to resort to air freight. The crisis is not just a U.S. problem, as it affects global shipping and consumer economy, with warnings that the attacks will have a greater impact than in the energy markets due to the significant portion of global container traffic traversing the Red Sea.