(Reuters) – Belgian oil tanker company Euronav expects global sea trade to increase this year, driven by the rerouting of Red Sea shipping, but said a change in the U.S. presidency and a slowdown in China’s economy are key risk factors.
The company said in a press release that seaborne trade is on track to increase by 5.1% by year-end, with the Red Sea re-routing alone to contribute approximately 3.0% to tonne-mile trade growth.
Many container ships are currently taking a longer route around the Horn of Africa due to attacks by Yemen’s Houthi rebels in the Red Sea, in what they say is solidarity for Palestinians in Gaza.
Euronav noted that a change in the U.S. presidency in November’s elections could have an impact on global geopolitics, with ocean shipping being a key area of focus.
Donald Trump is expected to take a more aggressive stance on China if he returns to office and a potential increase in trade tariffs could negatively affect global trade, and by extension, shipping.
Currently experiencing some of its highest returns in decades, the shipping industry expects this trend to continue, if the status quo holds, the group said.
(Reporting by Alban Kacher; Editing by Sharon Singleton alban.kacher@thomnsonreuters.com)
