INSUBCONTINENT EXCLUSIVE:
Global maritime trade, which accounts for 80% of international exchanges, is experiencing significant disruptions.Key routes, the Red Sea
and the Panama Canal, face reliability issues due to rebel attacks and adverse weather conditions, respectively.These disruptions are
particularly impactful on oil and gas markets, which are heavily reliant on the Red Sea for transport.The Red Sea and Panama Canal together
handle about 20% of global maritime trade.The Red Sea is a critical passage for oil, gas, and various cargo types
Oil tankers make up a significant portion of the vessels in this region.Recent traffic has seen a 30% decline in the Panama Canal and 10% in
the Red Sea, with the World Container Index (WCI) rising by 195% since the Panama disruptions.Oil, sensitive to geopolitical events, has
(Photo Internet reproduction)The Bank of America (BofA) warns that escalating Middle East tensions could sharply drive up oil prices.Similar
potentially leading to global inflation.This impact extends beyond oil and gas markets to other commodities.Global Market DynamicsLonger
delivery times are shifting consumption patterns to avoid stock deficits.BofA predicts 2024 Brent oil at $90, citing market balance
Long-term forecasts lowered due to the sluggish United States economy.Goldman Sachs highlights the significant influence of Red Sea
disruptions on oil, along with structural regional mismatches between supply growth sources and demand.These reduced maritime flows have
intensified the shortage in tanker markets.For steel, extended delivery times and higher freight costs could maintain high global
prices.However, excessive costs might redirect the market, with steel possibly being reallocated to Latin America.The paper and pulp sector
appears less impacted, but redirecting exports to Latin America could increase local prices.Maritime trade challenges underscore global
market interdependence, emphasizing the necessity of adaptive strategies to mitigate disruptions.
