The Red Sea crisis, the Russo-ukrainian conflict and the Panama Canal drought are disrupting global trade

The United Nations Conference on Trade and development (UNCTAD) has warned that the Red Sea crisis, the Russia-ukraine conflict and the drought in the Panama Canal are causing serious disruptions to global trade.

Major players in the global shipping industry have temporarily halted access to the Suez Canal since Houthis in Yemen began attacking ships in and around the Red Sea. The Suez Canal is an important link between the Mediterranean Sea and the Red Sea and is important for the transport of energy and goods between Asia and Europe.

To make matters worse for shipping companies, a severe drought has reduced the water level of the Panama Canal to its lowest level in decades, significantly limiting the number and size of ships that can pass through the canal.