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Despite shipping disruptions in Red Sea, global trade continues to flow relatively smoothly

According to a recent report from the National Retail Federation and Hackett Associates, major U.S. container ports are still projected to experience year-over-year increases in inbound cargo volume during the first half of 2024. Despite ongoing disruptions caused by Houthi rebel attacks in the Red Sea, global trade in consumer goods, industrial materials, and bulk commodities continues relatively smoothly. Airline avoidance of the region and initial delays observed at the onset of the attacks are starting to diminish as supply chains adapt.

Photo © Mr.siwabud Veerapaisarn |

Ben Hackett, founder of Hackett Associates, noted the decreasing disruptions and emphasized that fears of inflationary impacts due to higher transportation costs should be alleviated. Retailers and their transport partners are adjusting to new routes and schedules.

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