Proactive Investors - Traffic through the Red Sea has dropped dramatically since mid-December, as tensions boil in the Middle East.
Official figures showed on Wednesday that ships passing through the Suez Canal began to decline from December and had fallen by two-thirds year on year by the first week of April.
The number of ships passing through the Bab-Al Mandab Strait, at the opposite end of the Red Sea, dropped by 59% over the first week of April, the figures from the ONS showed.
This comes after the outbreak of conflict between Israel and Hamas in October, which was followed by attacks on shipping in the region by Iranian-backed Houthi rebels.
“The Suez Canal and the Bab-Al Mandab Strait serve as gateways to and from the Red Sea, allowing the transportation of goods such as oil and natural gas, which underlines their strategic importance,” the ONS pointed out.
According to the ONS, the reduction in shipping traffic was attributed to both cargo and tanker vessels.
“This aligns with the widely reported maritime disruption in the Middle East,” it added.
Analysts have previously warned of the potential inflationary effects of Red Sea shipping disruption, which has threatened to hit businesses with higher supply costs.
Container ships along both routes have come under missile and drone attack since November from Iran-backed Houthi rebels it said in solidarity with Palestinians in Gaza.
Ships have had to re-route around Africa via the Cape of Good Hope in a detour adding weeks to journeys.
In February, ship crossings around the Cape of Good Hope doubled compared to the same period in 2023, said the ONS.
Disruption to the Panama Canal due to a severe drought in Central America had already meant delays to ships moving between the Pacific and Atlantic oceans.