Global trade hinges on 27 vulnerable waterways, new report warns of rising risks
A study by Oxford Economics identifies 27 key maritime chokepoints, noting that disruptions—like those in the Strait of Hormuz amid the Iran conflict—could sharply raise consumer prices worldwide.
Oxford Economics released a briefing outlining 27 major maritime chokepoints that handle a large share of world trade, emphasizing that many lie in Asia, such as the Strait of Malacca and Taiwan Strait. The ongoing Iran-U.S. confrontation has curtailed traffic through the Strait of Hormuz, a conduit for about one-fifth of global oil, leading to higher oil and gasoline prices for consumers. The study warns that geopolitical moves to control these routes, as well as climate-related challenges like drought-driven low water in the Panama Canal, could halt shipments.
While some passages have alternate routes, the lack of substitutes for the Hormuz corridor makes it uniquely vulnerable. Even where detours are possible, longer voyages raise crew wages, fuel consumption and overall freight costs, tightening supply and pushing up prices. Harry Murphy Cruise, head of economic research and global trade at Oxford, stressed that these compounded risks could strain economies worldwide.
Why it matters
Disruptions at key sea lanes can raise prices and threaten the flow of essential goods to consumers globally.
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