Source: IMF PortWatch. Note: Percentage change based on the difference between average daily ship arrivals between January and November 2023 (reference period) and between December 2023 and June 2024 (crisis period).
The Red Sea Crisis refers to events that began in December 2023 and which led to a notable decline in transits through the Strait of Bab el-Mandeb because of attacks on passing ships by drones and missiles out of West Yemen. The outcome was that several Asia-Europe shipping services were rerouted through the Cape of Good Hope. Since the Red Sea and the Suez Canal account for approximately 15% of global trade and twice as much for global container traffic, this deviation came with costs, disruptions, and delays, primarily affecting European supply chains. The Red Sea was not closed to maritime circulation, and the Suez Canal remained fully open and operational.
The impact on maritime shipping can be seen from the perspective of changes in the average number of port arrivals compared with a reference period.
- Transshipment hubs around the Persian Gulf, including Jebel Ali and Salalah, experienced a decline in vessel calls as traffic going through the Strait of Bab el-Mandeb dropped by 48%.
- Saudi Arabian ports on the Red Sea were among those experiencing the most pronounced declines (Jeddah and King Abdullah). At the same time, Damman, on the Persian Gulf, saw an increase as cargo was diverted.
- As several deep-sea services were diverted away from the Red Sea, some were replaced by additional feeder services. Sokhna experienced a surge in port calls, while the decline of others was partially mitigated (Port Said and Damietta), even if the Suez Canal saw a 37% decline in the number of transits.
- Main transshipment hubs in the Central Mediterranean, Gioia Tauro and Marsalokk, experienced a notable decline as many deep-sea services that usually call them were diverted through the Cape Route.
- Mediterranean gateways to Europe, such as Barcelona, Genoa, Piraeus, and Ambarli, saw a slight decline in port calls, in part attributable to the decline in transshipment activity in the region.
- Major transshipment hubs adjacent to the Strait of Gibraltar experienced a mitigated outcome. While transits through the strait declined by 13%, hubs like Tanger Med and Algeciras saw either slight growth or decline in port arrivals, according to the restructuring of shipping networks.