Suez and Panama canal issues to severely impact global shipping markets and trade

Detailed analysis of what this means for the economy, emissions and geopolitics.

Recent developments indicate that major shipping companies like Maersk, MSC Cargo, and Hapag-Lloyd AG have paused their voyages through the Red Sea. This decision, influenced by increased attacks by the Houthi against non-Israel connected ships, has significant implications for global trade, geopolitical dynamics, and environmental concerns. It will lead to higher inflation which will complicate global central bank’s efforts to reduce interest rates next year. On emissions, the grammes of carbon per nautical mile intensity for cargo ships (from bulkers to tankers) are likely to breach the IMO’s new GHG strategy pathway.

Detailed note below goes through the impact on global trade, shipping costs. Geopolitical and military considerations, EU-Asia trade, Oil market implications.