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The Impact of the Red Sea Crisis on Global Shipping and Strategic Supply Chain Management
Subject area: Management and Commerce · Area of research: Strategic Supply Chain Management
DOI: https://doi.org/10.64388/IREV9I4-1711267-1778
Abstract
The global maritime industry is the backbone of international trade, with over 80% of goods transported by sea. The Red Sea, serving as a critical artery of this network, has recently emerged as one of the most disrupted maritime corridors due to geopolitical instability and security threats. Since late 2023, the escalation of armed attacks on commercial vessels in the Red Sea has forced many shipping companies to reroute traffic around the Cape of Good Hope. This rerouting has caused significant increases in transit times, shipping costs, fuel consumption, and carbon emissions, creating unprecedented challenges for global supply chains. This paper examines the impact of the Red Sea crisis on international trade and strategic supply chain management (SSCM). Using secondary data from the United Nations Conference on Trade and Development (UNCTAD), the International Monetary Fund (IMF), the World Trade Organization (WTO), and industry reports from leading carriers such as Maersk and Hapag-Lloyd, the study provides both quantitative and qualitative analysis. Findings reveal a 50% reduction in container throughput in the Suez Canal during the first quarter of 2024, a tripling of freight rates on Asia?Europe routes, and an average delay of 10?14 days per shipment. The study contributes to the literature on global supply chain resilience by highlighting the vulnerability of maritime chokepoints and the urgent need for diversified supply strategies. It argues that strategic management plays a pivotal role in mitigating risks, emphasizing the importance of resilience, adaptability, and sustainability. Recommendations include the adoption of multi-route strategies, greater investment in regional supply chains, and the integration of digital technologies to enhance risk forecasting.
Keywords
Red Sea Crisis, Global Shipping, Supply Chain Resilience, Strategic Supply Chain Management, International Trade, Logistics Disruption
How to cite this paper
@article{1711267,
author = {Ahmed Maged Kabil Hamed},
title = {The Impact of the Red Sea Crisis on Global Shipping and Strategic Supply Chain Management},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {9},
number = {4},
pages = {582-592},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1711267.pdf},
abstract = {The global maritime industry is the backbone of international trade, with over 80% of goods transported by sea. The Red Sea, serving as a critical artery of this network, has recently emerged as one of the most disrupted maritime corridors due to geopolitical instability and security threats. Since late 2023, the escalation of armed attacks on commercial vessels in the Red Sea has forced many shipping companies to reroute traffic around the Cape of Good Hope. This rerouting has caused significant increases in transit times, shipping costs, fuel consumption, and carbon emissions, creating unprecedented challenges for global supply chains. This paper examines the impact of the Red Sea crisis on international trade and strategic supply chain management (SSCM). Using secondary data from the United Nations Conference on Trade and Development (UNCTAD), the International Monetary Fund (IMF), the World Trade Organization (WTO), and industry reports from leading carriers such as Maersk and Hapag-Lloyd, the study provides both quantitative and qualitative analysis. Findings reveal a 50% reduction in container throughput in the Suez Canal during the first quarter of 2024, a tripling of freight rates on Asia?Europe routes, and an average delay of 10?14 days per shipment. The study contributes to the literature on global supply chain resilience by highlighting the vulnerability of maritime chokepoints and the urgent need for diversified supply strategies. It argues that strategic management plays a pivotal role in mitigating risks, emphasizing the importance of resilience, adaptability, and sustainability. Recommendations include the adoption of multi-route strategies, greater investment in regional supply chains, and the integration of digital technologies to enhance risk forecasting.},
keywords = {Red Sea Crisis, Global Shipping, Supply Chain Resilience, Strategic Supply Chain Management, International Trade, Logistics Disruption},
month = {October},
doi = {https://doi.org/10.64388/IREV9I4-1711267-1778}
}