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Shipping Disruptions in the Red Sea: Ripples across the Globe
FRB of St. Louis
2024.02.20
Recent geopolitical tensions across various regions of the world have increased the risk of shipping disruptions. While geopolitical conflict often takes place in relatively narrow geographic areas, the global nature of the market for international shipping services could act as a channel through which local shocks are amplified and transmitted to the rest of the global economy. In this blog post, we investigate the extent to which this may be the case following recent shipping disruptions in the Red Sea.