Global trade fell 1.3% from November to December, Germany's Kiel Institute for the World Economy said on Thursday, citing "the consequences of attacks on cargo ships in the Red Sea."
Retailers are warning of shipping delays and the cost of transporting goods by sea is rising.
In a report published on Tuesday, the World Bank warned that disruption to key shipping routes “could disrupt relief in supply networks and increase the likelihood of inflationary bottlenecks.”
Six of the 10 largest container shipping companies (Maersk, MSC, Hapag-Lloyd, CMA CGM, ZIM and ONE) largely or completely avoid the Red Sea due to the threat from Houthi militants.
