The European Commission's Executive Vice President Valdis Dombrovskis said “the bloc is at risk of higher consumer prices and slowing growth due to disruptions to shipping across the Red Sea, but the EU has not yet felt the economic impact.”
"Shipping traffic across the Red Sea has dropped 22 percent in one month due to attacks by the Iran-aligned Houthis in Yemen," he said, explaining, "The decline will accelerate as companies divert ships to the Cape of Good Hope route around the African continent."
Between 12 and 15 percent of the world's merchandise trade and 25 to 30 percent of shipping containers pass through the Suez Canal at the northern tip of the Red Sea. The EU accounted for 23 percent of all imports of goods by ship from Asia in 2022, the vast majority of which passed through the Suez Canal.
Source (Al-Arabiya.net Website, Edited)
