The UNCTAD is sounding alarms over the escalating crisis in the Strait of Hormuz, as shipping disruptions evolve into a significant economic shock. This critical waterway, responsible for about 25% of the world’s oil, sees diminishing ship transits, leading to rising energy and transport costs, jeopardizing food security globally.
Disruptions in the Strait of Hormuz are alarming global markets, particularly energy and agriculture. The UNCTAD report highlights that this vital corridor, crucial for 25% of the world’s oil trade and significant fertilizer shipments, threatens developing economies already burdened by high debt and rising import costs, risking food insecurity.
Global trade by sea is expected to grow by 2.4% in 2023, reaching 12.29 billion tons. The demand for bulk raw materials and containerized goods is driving this growth. The UNCTAD predicts a modest 2% increase in shipping in 2024, with containerized traffic expected to recover significantly.
