UN: Global trade is being disrupted by Red Sea attacks, war in Ukraine and low water in Panama Canal

The U.N. trade body sounded an alarm Thursday that global trade is being disrupted by attacks in the Red Sea, the war in Ukraine, and low water levels in the Panama Canal. Jan Hoffmann, a trade expert at the body known as UNCTAD, warned Thursday that shipping costs have already surged and energy and food costs are being affected, raising inflation risks. Since attacks by Yemen’s Houthi rebels on ships in the Red Sea began in November, he said, major players in the shipping industry have temporarily halted using Egypt’s Suez Canal. The critical waterway connecting the Mediterranean Sea to the Red Sea has seen trade volume drop by 42% over the last two months, Hoffmann said.