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Red Sea Conflict Continues To Collapse Trade, Increase Costs

The Kiel Institute for the World Economy (IfW), an independent, non-profit economic research institute and think tank based in Kiel, Germany, released a new report on Jan. 11 which showed that world trade dropped by 1.3% from November to December 2023 as a result of Houthi attacks on merchant vessels in the Red Sea.

RT reported, “The German economic institute said on Thursday [Jan. 11] that the volume of containers transported via the Red Sea had plummeted by more than half as of December and is currently almost 70% below the volume that would usually be expected.

“The research shows that currently around 200,000 containers are being transported via the Red Sea daily, down from some 500,000 per day in November.

“’The detour of ships due to the attacks in the Red Sea around the Cape of Good Hope in Africa means that the time it takes to transport goods between Asian production centers and European consumers is significantly extended by up to 20 days,’ said Julian Hinz, director of the IfW Kiel’s trade policy research center.”

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