Red Sea cargo volumes plummet by 21% in 2024 following ship attacks

Posted on March 4, 2024   |  

Cargo volumes between the Gulf of Aden and Red Sea ports dropped by 21% compared to the same period last year.

Merchant ships are avoiding the region due to concerns over attacks by the Houthis, leading to a significant decline in arrivals.

Houthi attacks on ships in the Red Sea and the Gulf of Aden began in November 2023, prompting container and gas carriers to avoid the area by December.

By January, there was a notable reduction in transit across various sectors, with a 50% decrease in ships passing through the Gulf of Aden and a 37% decrease in the Suez Canal compared to the previous year.

Container ship transits through these regions have decreased by 70%.

The attacks have directly impacted the ability of regional countries to trade, forcing some to seek alternative routes despite higher costs and longer transit times.

Countries like Saudi Arabia, Jordan, and Egypt have alternative routes available, such as Dammam in the Persian Gulf and Mediterranean ports like Alexandria and Damietta.

However, countries like Sudan, Somalia, Eritrea, and Yemen lack viable alternatives, resulting in a 25% year-on-year decrease in shipments in 2024, though Djibouti has experienced stable shipments.