Inga Fechner’s Post

Great analysis from Boston Consulting Group via James Breeze at CBRE on chokepoints for global trade. Showcases further how port diversification in the US is here to stay. Two quick facts beyond the chart: - While 5% of global trade flows through Panama Canal, 46% of the trade from US East Coast to East Asia passes through. Good sign is that the drought conditions are improving - with rainy season approaching canal will increase number of daily ships to 32, still below 2022 levels of 39. - Since late 2023 some 470 container ships have been re-routed from the Suez, adding 9-17 days of transit time to go around Africa.

Panama Canal Crisis: Drought Hits Hard! In today's critical update, we delve into the severe drought impacting the Panama Canal, causing dramatic reductions in water levels and imposing new restrictions on ship traffic. Witness a 36% plummet in shipping movement, creating significant bottlenecks in global supply chains that ripple across economies worldwide. Explore how escalating shipping costs and extended transit times are forcing a reshaping of international trade routes and strategies. This deep dive into the challenges and adaptations in global trade due to environmental changes offers a comprehensive look at the broader implications on the economy and logistics. Don't forget to like and share this video to spread awareness about these pressing global issues. #PanamaCanal #GlobalTrade #SupplyChainCrisis #EconomicImpact Follow our channel Global Trade Insights for more insightful information on International Trade & Commerce: https://lnkd.in/gK3CQhqh

Panama Canal Crisis: Drought Hits Hard! In today's critical update, we delve into the severe drought impacting the Panama Canal, causing dramatic reductions in water levels and imposing new restrictions on ship traffic. Witness a 36% plummet in shipping movement, creating significant bottlenecks in global supply chains that ripple across economies worldwide. Explore how escalating shipping costs and extended transit times are forcing a reshaping of international trade routes and strategies. This deep dive into the challenges and adaptations in global trade due to environmental changes offers a comprehensive look at the broader implications on the economy and logistics. Don't forget to like and share this video to spread awareness about these pressing global issues. #PanamaCanal #GlobalTrade #SupplyChainCrisis #EconomicImpact Follow our channel Global Trade Insights for more insightful information on International Trade & Commerce: https://lnkd.in/d2QEbrYc

Compared to other regions of the world, #LatinAmerica is relatively insulated from the ongoing #RedSea trade disruptions. However, if the Israel-Hamas war expands into a regional conflict and has a meaningful impact on global #oil prices, it would place pressure on #inflation rates in the region. Download the full presentation: https://lnkd.in/gJmtREk3 #ConnectedThinking #LatAm

Almost 12% of global trade is at risk due to the ongoing Red Sea crisis. Here is the potential global financial and economic impact of the crisis 👇 ➡ The Red Sea is currently threatened by Yemeni rebels called the Houthis. They have been launching multiple attacks on commercial ships, which has disrupted global trade. ➡ MSC is the world’s largest shipping carrier, and one of their ships was recently attacked. ➡ How important is the Red Sea for global trade? About 12 per cent of global trade and 30 per cent of international container traffic passes through the Suez Canal, which is USD 1 trillion annually. Suez Canal from the north and Bab-el-Mandeb Strait in the south are passages that large container ships usually pass through. Here is more about the impact and risks faced by the global economy 👇 Share your thoughts on the potential risks if the crisis continues for a more extended period 👇 Sources: The National News, Reuters, AFR, Al Jazeera, Zawya #redsea #finance #supplychain #investmentbanking #inflation

🔴 Important Update on Red Sea Tensions and Economic Impact I would like to share a critical development that might influence economic trends in the Middle East. Recent conflicts involving Houthi attacks on commercial shipping in the Red Sea have led to a significant shift in international trade routes. Due to these tensions, many shipping companies have rerouted their vessels around Africa, increasing the time and cost of shipments. This shift is crucial as the Red Sea route accounts for about 15% of global maritime commerce. 📈 Impact on Inflation: The increased costs and extended transit times are likely to affect supply chains significantly, potentially leading to higher inflation rates in the region. This situation could escalate the price of goods and commodities, impacting businesses and consumers alike. 🌍 Global Implications: While this issue primarily concerns the Middle East, its ripple effects could be felt worldwide due to the interconnected nature of global trade. 🤝 Staying Informed: As professionals, it's crucial to stay updated on these developments. Understanding the broader impact can help us prepare and adapt our strategies in business and economics. Feel free to share your thoughts or insights on this situation. #RedSea #GlobalTrade #MiddleEast #Inflation #SupplyChain

https://lnkd.in/dtBwE8Ff ✅ The ongoing Red Sea conflict has significantly impacted global trade routes, shifting cargo traffic from the Suez Canal to the Cape of Good Hope due to Houthi rebel attacks. ✅ This diversion has increased trade volume around the Cape by an estimated 74%, while Suez Canal traffic plunged 50% in early 2024. ✅ As mentionned by Axios, this longer route not only delays shipments but also increases fuel demand and costs, contributing to higher oil prices and exacerbating inflationary pressures. ✅ With oil in transit reaching near-record levels, the disruption poses a substantial risk to global supply chains and economic stability, underlining the critical role of geopolitical factors in shaping global trade dynamics. #shipping #maritime #transpacific #transatlantic #supplychain #containershipping #oceanfreight #seafreight #containership

I love a good infographic (who doesn’t?) and this one from IMF PortWatch underlines the striking shift in maritime trade routes continuing 3 months on from widespread rerouting decisions by firms. Since then we’ve had an IMF bailout of Egypt due to a currency crisis (no doubt exacerbated by the collapse in Suez Canal traffic), continued impacts for traders including ship availability, ETS estimates, and costs, and a budding ecological disaster as the Rubymar (loaded with fuel and fertiliser) slowly sinks into the Red Sea. Buckle up as this situation further entrenches leading to continued trade disruption and threats to sustainability efforts and biodiversity. It’s only a matter of time before the economic impacts start to spread outward… (Credit to https://lnkd.in/eArnzu6p where I stole the nifty graph below) #maritime #internationaltrade #supplychain #environment #sustainability #redsea

African nations, already grappling with the lingering effects of COVID-19 and the Ukraine conflict, now confront a fresh challenge: the Red Sea crisis. This latest geopolitical hurdle threatens to disrupt trade routes between Europe and Asia, with potential economic ramifications for Africa. The Red Sea holds immense importance, serving as a vital maritime zone through which approximately 12% of global trade and 30% of global container traffic passes annually. Compounded by drought in the Panama Canal and blockades in the Black Sea, the crisis has led to over 18 shipping lines reportedly avoiding the Suez Canal. Despite the severity of the situation, financial markets have exhibited a muted response, perhaps due to expectations that the conflict would remain contained to the United States, United Kingdom, and Yemen's Houthi rebels. Consequently, commodity prices, particularly oil benchmarks, have reacted less dramatically, with market focus diverted to other issues such as the US Federal Reserve's rate cycle. Additionally, insurance payouts to shipping companies may have temporarily cushioned the impact, delaying price changes for consumers. Find Out More: https://lnkd.in/dS7iYqk6

Amidst recent global challenges such as the wars in Ukraine and Gaza, the Red Sea attacks, and drought in the Panama Canal, following global developments in trade has never been more crutial. 📉 In October 2023, global trade fell by 8.3% annually. Trade in agriculture, fisheries, and food fell by 13%, while trade in manufacturing goods and minerals fell by almost 7.8% each. 📈 Compared to pre-COVID and pre-war levels, exports are now 39% and 4.7% higher, respectively. Additional to this overview, International Trade Centre's #TradeBriefs also publishes monthly trade data by country and by sector, offering a comprehensive understanding of the evolving landscape. Feel free to share this resource with your #trade network! 🔗 https://lnkd.in/d2zR2YnV #ThisWeekatITC #GlobalTrade #TradeTrends #supplychains #tradedata