The ongoing Red Sea crisis is significantly disrupting global shipping and trade flows. As a vital route connecting Asia and Europe, the Suez Canal handles 12-15% of world trade, with over US$1 trillion worth of goods passing through annually. Recent attacks and geopolitical tensions have throttled canal traffic, forcing ships to reroute around Africa, adding weeks to transit times and escalating costs. Shipping capacity has shrunk by up to 20%, and insurance premiums have surged from 0.3% to 0.7%, dramatically increasing operational expenses.

These challenges are causing longer delivery times, higher freight and insurance costs, and environmental concerns due to increased fuel consumption. While some shipping lines have resumed Suez Canal transits with incentives, uncertainty remains high. 

As the situation persists, stakeholders across the supply chain are closely monitoring developments that could reshape maritime logistics for years to come.