The Panama Canal is experiencing delays due to low water levels caused by drought, while the Suez Canal is facing accessibility issues because of security concerns in the region.
Major shipping companies are rerouting their vessels to avoid the Suez Canal, opting for longer routes around Africa.
“The safety and security of our people and those working on our behalf is BP’s priority,” BP stated. (Trending: FBI Bribery Probe Caught Joe Biden’s Brother On Tape)
This has led to increased transit times and raised concerns about potential disruptions to global supply chains.
“The Suez is responsible for 12% of global seaborne trade, including a large portion of oil and LNG shipments, meaning that any prolonged disturbance could have a profound impact on prices and supplies,” the report noted.
“The journey around the Cape of Good Hope in Africa is roughly 3,000 miles longer than the Red Sea route.”
The situation has already impacted oil and LNG trade, with futures for international benchmark Brent crude and U.S.-based West Texas Intermediate rising significantly.
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