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Wheat shipments via Suez plunge amid Red Sea attacks: WTO

Published 01/18/2024, 11:10 AM
Updated 01/18/2024, 11:50 AM
© Reuters. FILE PHOTO: The crop is seen in a wheat field ahead of annual harvest near Moree, Australia, October 27, 2020.  REUTERS/Jonathan Barrett/File Photo

GENEVA (Reuters) - Wheat shipments via the Suez Canal fell by almost 40% in the first half of January to 0.5 million metric tons due to attacks in the Red Sea and Gulf of Aden, the World Trade Organization said on Thursday on social media platform X.

The WTO data, based on a dashboard developed jointly by the International Grains Council (IGC) and the World Trade Organization, adds to signs of ship diversions following attacks on vessels by Iran-aligned Houthi militants in Yemen.

Earlier this week, shipping sources had said they expected some grain cargo diversions but that most would continue to risk passing through the Suez Canal which is the shortest shipping route between Europe and Asia.

In December, around 8% of wheat shipments from the European Union, Russia and Ukraine that would typically travel via the Suez Canal followed alternative routes, the WTO said.

© Reuters. FILE PHOTO: The crop is seen in a wheat field ahead of annual harvest near Moree, Australia, October 27, 2020.  REUTERS/Jonathan Barrett/File Photo

That surged to around 42% in the first half of January, it said. Prior to the attacks, the share of alternative routes was only about 3% on average, it said.

However, it appeared that few if any shipments were being cancelled altogether. "The surging number of diversions appears to have had a limited impact to date on total deliveries," the WTO said.

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