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BBCNEWS Asia July 6, 2024



havoc to global trade. speaking in bahrain, the us defense secretary lloyd austin said participating countries include the united kingdom, bahrain, canada, france, italy and spain, among others. this is notjust a us issue, this is an international problem and it deserves an international response. and that s why i m convening a meeting tomorrow, a ministerial meeting, with fellow ministers in the region and beyond to address this threat. for more on what the shipping disruption might mean for the global economy, i m joined from washington by hung tran, a senior fellow at the atlantic council and former deputy director at the international monetary fund. this area of the red sea leading to the suez canal is quite important in terms of the volume of trade passing through it. about 12% of global trade passes through the red sea, including 30% of the container shipping. altogether, it accounts for about us$1 trillion per year of trade, so it is quite significant, and a disr ....

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BBCNEWS World July 6, 2024



business reporter david waddell. let s have a look at the geography of the situation. right here is the bab al mandab strait. it s right next to yemen, from where those houthi attacks originated. it s at the southern end of the red sea. at the northern end is the suez canal. now, ships cannot pass through the suez canal from the south without first passing through this choke point. a couple of days ago, the maersk shipping container company and hapag lloyd both announced they wouldn t be making that transit. they ve since been joined by other shipping companies. now, if you re a ship master trying to get your vessel from the indian ocean to the atlantic ocean and you cannot or will not traverse through suez, you need to pass by the cape of good hope. that adds an extra 3,000 nautical miles to thejourney. and there are other issues for ships trying to traverse from the atlantic to the pacific ocean through here. the panama canal is accepting many fewer ships right now be ....

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BBCNEWS Asia July 6, 2024



speaking in bahrain, the us defense secretary lloyd austin said participating countries will include the united kingdom, bahrain, canada, france, italy and spain, among others. this is notjust a us issue, this is an international problem and it deserves an international response. and that s why i m convening a meeting tomorrow, a ministerial meeting, with fellow ministers in the region and beyond to address this threat. for exactly what this shipping disruption might mean for the global economy, i spoke to hung tran, a senior fellow at the atlantic council and former deputy director at the international monetary fund. this area of the red sea leading to the suez canal is quite important in terms of the volume of trade passing through it. about 12% of global trade passes through the red sea, including 30% of the container shipping. all together, it accounts for about us$1 trillion per year of world trade, so it is quite significant, and a disruption there would cause dam ....

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BBCNEWS Asia July 6, 2024



shipping companies may ask and halfback lloyd, another big shipping container company, have both announced they would stop sending shipping through the strait. i ll show you where thatis the strait. i ll show you where that is so it s here, at the south side of the red sea, and at the north side of the rest see, we have the suez canal. that s red sea. these are two of the world s biggest choke if anything, it halts shipping. making its way through to india or europe, or the unit states, it has to come here, they re here, through the straits of gibraltar before going further west or north from there. the alternative is to go south through the cape of good hope, adding 9 11; days potentially on the journey time. the suez canal authority has given a statement, saying, they are quite keen that business continues to flow through their. they have said that on sunday, 77 ships made their way through the suez canal, which i think is fairly normal. they said in recent weeks, s ....

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BBCNEWS Asia July 6, 2024



there have been concerned that the israel hamas would spread the region. here s our business reporter david waddell. the southern end of the red sea, the northern end of the suez canal. you can t get through the suez canal unless you make your way through this chokepoint. two companies have announced they will make that acid. one is the shipping container company maersk and the other is hapag lloyd. you need to make this much longer passage around the cape of good hope in south africa. that might add nine days, possibly more to thejourney might add nine days, possibly more to the journey if you go to europe, possibly six days to the united states. four ships traversing from the atlantic to the pacific ocean through the panama canal, there are additional issues. it s here from the independent economist. when you look at trade from shanghai to new york and asia to the east coast of the us, if we can t go through the panama canal, because it is very constrained because of ....

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