Geopolitical instability continued to affect global trade in the second half of 2024, says a new report

Global Trade continued to deteriorate in the second half of 2024, as the waves from the Red Sea crisis continued to ripple across supply chains, according to a new report by S&P. 

The crisis in the Red Sea, which has seen Houthi rebels attack western cargo ships, has forced shipping companies to send their cargo around the Cape of Good Hope to avoid being hit, throwing schedules into disarray. 

Similarly, a drought in the Panama Canal has restricted the use of the vitally important trade conduit, forcing shipping lines to use alternative routes or opt for land-based transport.  

24% of British companies doing business overseas have noted that they exported less in June than they did last year, with only 16% reporting an increase, according to recent ONS data. 

Fears surrounding new Houthi attacks on cargo ships and a potential regional escalation of the ongoing Israel-Hamas conflict, have resulted in buyers ordering Christmas stock earlier this year to avoid major disruption during the peak holiday season. 

This will, in the view of many experts, place more pressure on global supply chains and potentially exacerbate existing delays.