Maritime traffic through the vital artery of the Suez Canal has plummeted 66% since cargo was forced to divert due to attacks on ships, according to official figures.
The data, from the UK’s Office for National Statistics (ONS), covers the period from mid-December to early April.
It is important because it represents the magnitude of the disruption to supplies through the artificial canal linking the Mediterranean Sea to the Red Sea since the Iranian-backed government Houthi fighters They began shooting at ships on Christmas Eve last year.
There are fears that rising insurance, fuel and wage costs risk fueling a new wave of inflation since the detour to Europe from destinations such as China, a manufacturing powerhouse, around the southern tip of Africa, adds up to 14 days to transit times.
Separate ONS data covering the pace of price rises is yet to show any real impact on the UK economy, but the Bank of England is among the institutions monitoring the situation as several companies report the impact. of rising costs.
Container prices, for example, rose more than 300% as disruption accelerated earlier this year.
Houthi fighters based in Yemen have been attacking ships they claim have links to Israel.
They argue that they are acting in sympathy with the Palestinians and that a series of attacks have found their targets despite a US-led naval operation to protect shipping in the Red Sea.
The vast majority of large shipping companies have been using the detour around the Cape of Good Hope for some months.
The ONS said volumes began to increase in December 2023 and during the first weeks of 2024, more than doubling the levels seen in February 2023.
“In the first week of April 2024 (week 14), the volume of cargo ships and tankers through the Suez Canal was 71% and 61% below the level of vessel crossings observed the previous year, respectively”.
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It added that weekly crossings through the Strait of Hormuz, off the coast of Iran, between February and April showed a “significant decrease” compared to previous years.
It noted that sea travel was particularly low between weeks five and 10, with an average 23% reduction in crossing volumes compared to the same weeks last year.
This was mainly due to fewer tanker crossings, he said.
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The prospect of more dangerous journeys for tankers has been a factor behind rising oil prices.
Brent crude, which had been trading around $80 a barrel at the start of the year, rose as high as $91 earlier this month amid tensions across the conflict in the Middle East.
It culminated in tit-for-tat attacks between Israel and Iran.
It is currently trading at $88, reflecting the lack of rally since last week.
The AA reported on Tuesday that average petrol costs in the UK had once again surpassed the 150p a liter mark for the first time since November.
Experts have warned they probably have a long way to go as a weaker pound against the dollar this month will add to higher oil costs as the commodity is priced in the US currency.