Red Sea and Panama Canal disruptions amount to $1.25 trillion economic loss

The figures are taken from Russell’s new report ‘Why Insurers Should Monitor Their Transit Route Accumulations’.  Russell’s Red Sea trade analysis from October 2023 through to May 2024, at the height of Houthi attacks on shipping vessels, shows that the commodities most impacted are crude oil, plastic materials, telephone equipment, cars and clothing. 

Similarly, Russell’s analysis of trade through the Panama Canal during the vessel restrictions throughout 2023, highlights the commodities most impacted are LPG, crude oil, cars and people carriers. 

Blockages at two of the world’s largest shipping routes have thrown shipping schedules and global supply chains in disarray, as vessels are opting for longer alternative routes adding to delays and increasing costs.

Suki Basi, Managing Director of Russell Group, commented: “The figures that we have released today are unique in that they quantify the economic impact of the ongoing disruptions in two of the world’s largest shipping routes, rather than focusing on other metrics such as vessel numbers.  

“Clearly, it highlights the potential ripple effect of any disruption within a key transit route, which plays a vital role in moving goods across the world. This is what we have highlighted in our new report.