Report has been released by the United Nations Conference on Trade and Development (UN Trade and Development).
Key findings
- Global maritime trade grew by 2.4% in 2023, recovering from a 2022 contraction, but the recovery remains fragile.
- Key maritime chokepoints, like the Suez and Panama Canals faced unsettling disruptions.
About Chokepoints
- A chokepoint is a geographical feature or passageway (Includes valley, strait etc.) that is narrow and strategic.
- Geo-strategic Significance
- Facilitates Connectivity: E.g. Suez Canal (Connects the Mediterranean Sea with the Red Sea) is crucial for trade between Europe and Asia.
- Energy Security: E.g. Strait of Hormuz (Connects the Persian Gulf with the Gulf of Oman and the Arabian Sea) witness significant world’s petroleum transportation.
- Key Reasons behind disruptions
- Climate-induced low water levels. E.g. Panama Canal (connecting the Pacific and Atlantic Oceans)
- Geopolitical tensions and conflicts. E.g. Yemen's Houthi rebels attacked ships in Bab al-Mandeb Strait (Connects the Red Sea to the Gulf of Aden and the Indian Ocean
- Impacts of disruptions:
- Straining supply chains (such as energy supplies for India) and raising costs, etc.
- Rising shipping costs due to long routes. E.g. Rerouting around the Cape of Good Hope (southern tip of Africa)
Other Key Chokepoints of the World
|