{"id":90705,"date":"2025-12-02T00:00:00","date_gmt":"2025-12-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2025\/12\/02\/snags-at-the-worlds-key-maritime-trade-bottlenecks-amount-to-a-usd-14-bn-loss-annually\/"},"modified":"2025-12-02T00:00:00","modified_gmt":"2025-12-02T00:00:00","slug":"snags-at-the-worlds-key-maritime-trade-bottlenecks-amount-to-a-usd-14-bn-loss-annually","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/12\/02\/snags-at-the-worlds-key-maritime-trade-bottlenecks-amount-to-a-usd-14-bn-loss-annually\/","title":{"rendered":"Snags at the world\u2019s key maritime trade bottlenecks amount to a USD 14 bn loss annually"},"content":{"rendered":"

Disruptions at key maritime chokepoints impact roughly USD 192 bn <\/strong>worth of <\/strong>trade annually<\/strong> \u2014 the equivalent of 0.77% of global trade, according to an Oxford Programme for Sustainable Infrastructure Systems study (pdf)<\/a> released last week. These disruptions \u2014 including delays, rerouting, ins. premiums, and higher freight costs, result in an estimated USD 14 bn loss per year.<\/p>\n

The breakdown:<\/strong> Disruptions at chokepoints last year caused around USD 10.7 bn in direct economic losses annually \u2014 the equivalent of some 0.04% of global trade. On top of this, nearly USD 3.4 bn is lost each year due to rising shipping costs directly tied to rerouting and held-up capacity.<\/p>\n

Who bore the brunt? <\/strong>While some of the analyzed bottlenecks handle bigger shares of the world\u2019s maritime trade, such as the Taiwan Strait, disruptions are more systematic and have a bigger economic impact in our regional bottlenecks: Bab el-Mandeb and the Suez Canal. Countries that are more reliant on the bottlenecks for revenues are also among those that are most impacted, with the study mentioning Egypt, Yemen, Iraq, and Panama at the top of the list. <\/p>\n

Methodology:<\/strong> The report looks into some 24 major maritime bottlenecks \u2014 including the Suez Canal, Bab el-Mandeb Strait, Taiwan Strait, and Strait of Malacca \u2014 analyzing how a mix of natural and human-caused hazards impacts each of these spots.<\/p>\n

Why does this matter?<\/strong> Maritime transport is responsible for facilitating 80% of the global trade volume and holds 50% of the trade value. The Strait of Hormuz handles about 21% of global petroleum exports shipped through its waters. The Panama Canal, Bosporus Strait, and Strait of Gibraltar facilitate over 10% of the world\u2019s grain exports. <\/p>\n

Our global economy depends heavily on a handful of maritime chokepoints. <\/strong>\u201cThe co-occurrence of hazards shows how interlinked our maritime system really is\u2026 a single event in one part of the world can trigger or amplify risks elsewhere. Analysing these dependencies helps us anticipate compound disruptions and better prepare for them,\u201d Research Fellow and Co-author Johannes Lumma added. <\/p>\n

So\u2026 how do we build resilience?<\/strong> Global supply chains require a layered strategy for risk mitigation against these disruptions,<\/strong> the report finds, adding that this could include maintaining emergency stockpiles, diversifying and increasing investments in security measures, and offering more comprehensive ins. products. Cooperation on a global scale is the most powerful tool economies could leverage \u2014 with the study\u2019s authors recommending coordinated risk management to prevent and adapt to future disruptions. <\/p>\n","protected":false},"excerpt":{"rendered":"

Disruptions are more systematic and have a bigger economic impact in our regional bottlenecks: Bab el-Mandeb and the Suez Canal.<\/p>\n","protected":false},"author":1,"featured_media":90706,"comment_status":"","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[963],"tags":[49,119,35,962,123,32,125],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-90705","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marco-picture","tag-egypt","tag-iran","tag-iraq","tag-marco-picture","tag-shipping-maritime","tag-trade","tag-yemen","wpautop","entry"],"acf":{"mongo_id":"6d69ba08-273e-436f-831f-6d8ade867b05","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/12\/77.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Snags 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