International officials convened in Leipzig, Germany, to discuss the far-reaching implications of the Red Sea crisis on the global supply chain at the International Transport Forum (ITF) held from Wednesday to Friday.
The forum brought together 69 nations to discuss global transport policy, especially potential disruptions to international shipping routes and the broader economic impact on global trade. They also explored ways to speed up the transition away from fossil fuels and the security of trade routes like the Red Sea.
Saudi Arabia is one of three nations joining the ITF in 2024. Their transport minister said the country is committed to securing trade routes.
"We are committed to the cause of the ITF working for, with everybody for a sustainable, safe and equitable, transport system in the world. And, stability is very important in every place in the world. And, we should work together with everyone to ensure direct and easy and free access for everybody in all international waters," said Saleh Al-Jasser, Saudi Arabia's minister of transport.
Chile will take over the presidency of the ITF for 2025. At the forum, Chilean transport minister expressed his hope to use the role to keep goods moving around the world.
"Keeping the logistics chains working is key for, not only the transport sector, but also for the world, as a whole. We've seen how different interruptions on the logistic chain can have. It's very important. Costs, economic cost, worldwide. And of course, the Red Sea is certainly one of the issues that need to be addressed. The safety there, the continuity of service. And that's something I think that this is the perfect forum for such conversations," said Juan Carlos Munos, minister of transport and communications of Chile.
Germany, host of the forum this year, also expressed the concern over the uncertainty the current situation poses.
"We all saw during the corona pandemic how vulnerable the delivery supply chains are. And so the security of supply chains is the focus of our security policy. I mean, we have also experiences with Nord Stream pipeline that we were vulnerable where we never thought we would be vulnerable. And also this applies to the Red Sea," said Hartmut Höppner, state secretary from the German Ministry of Transport.
Since December 2023, several major shipping companies have halted travel through the Red Sea and Suez Canal due to attacks on vessels by Yemen's Houthis. In the first quarter of 2024, transit through the Red Sea has dropped by 70 percent compared to 2023. With 12 percent of the world's oil and 10 percent of global seaborne trade passing through this route, the disruption has significant potential to impact the global economy, experts said.
International officials discuss Red Sea crisis implications on global supply chain
