What are the impacts of the Red Sea shipping crisis?

The Red Sea shipping crisis is disrupting global supply chains and increasing freight costs.

The Red Sea shipping crisis — a result of Houthi rebel attacks on cargo ships and tankers — is causing hundreds of vessels to avoid the Suez Canal, one of the world’s most important waterways. Instead, these vessels are being forced to reroute around southern Africa — a lengthy detour that adds 4,000 miles to each journey, vastly increasing transport times and freight costs. Will the crisis reignite supply chain issues and fuel inflation concerns?

With 30% of global container trade passing through the Suez Canal, the Red Sea shipping crisis is upending supply chains. This is compounded by the ongoing shipping disruptions caused by blockages in the Panama Canal, which is experiencing one of the region’s worst droughts since the 1950s.

https://www.jpmorgan.com/insights/global-research/supply-chain/red-sea-shipping