Cargo volumes decline 21% in Red Sea region

According to the latest BIMCO market report published on February 27th, cargo volumes to and from ports in the Gulf of Aden and the Red Sea experienced a notable 21% year-on-year decline during the initial seven weeks of 2024.

This drop is primarily attributed to a significant decrease in the number of ships arriving at these ports, as merchant vessels increasingly opt to avoid transiting through the region amid heightened concerns over attacks by the Houthis.

Since November 2023, Houthi forces have been targeting ships in the Red Sea and Gulf of Aden. By December, most container and gas carriers had begun steering clear of the area, and by January, a marked reduction in transits was evident across various sectors.

In February, the number of ships passing through the Gulf of Aden and the Suez Canal plummeted by 50% and 37% respectively compared to the previous year.

Notably, container ship transits through these routes saw a staggering 70% decline. Before the attacks, shipments through the Suez Canal constituted approximately 10% of global trade.

These attacks in the Red Sea directly impact the import and export capabilities of countries in the region. Even with alternative export routes available, they often entail higher costs, longer transit times, and capacity limitations.

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BIMCO: CARGO VOLUMES IN RED SEA AREA DROP 21% DUE TO ATTACKS ON SHIPS