Global Shipping Crisis Intensifies as Houthi Attacks Disrupt Red Sea Trade

World's Largest Shipping Company Warns of Economic Impact, as Major Companies Halt Manufacturing Due to Delays

Houthi rebel attacks in the Red Sea are causing major disruptions to global shipping, forcing vessels to divert around the Cape of Good Hope and adding one to two weeks to shipping journeys.
The world's largest shipping company, MSC, has warned Congress that if the Red Sea chaos is not stopped, the rise in freight prices will spread further into the global economy and hit consumer wallets.
Attacks on global shipping have led to significant delays in the global supply chain, causing companies like Suzuki Motor, Tesla, Volvo, and Michelin to halt manufacturing due to delayed arrival of containers.
Approximately 28% of the world's container trade traverses through the Suez Canal/Red Sea, and the disruption is feared to trigger another bout of supply chain-triggered inflation.
Experts warn that the crisis in the Red Sea is not just a U.S. problem, but a global one, with potential far-reaching impacts on the consumer economy.