The US airstrikes against the Houthis in Yemen have caused severe disruptions in logistics and transportation activities in the region, negatively affecting the iron and steel industry.
The US airstrikes against Houthi merchant ships and military targets in the Red Sea have deepened the security problems in Yemen, causing major disruptions in logistics and transportation activities in the region. Increased security threats are negatively affecting transportation processes, creating serious challenges for companies in the region. As the attacks continued, there was a significant decline in domestic market demand. This situation risks weakening Yemen's foreign trade and negatively affects economic activities in the region. In particular, the lack of secure ports has led to a decline in imports, negatively affecting economic activity. Experts predict that this problem will deepen in the coming days, causing a decrease in Yemen's trade volume.
Crisis Deepens in the Iron and Steel Market
The crisis in Yemen is not only affecting overall trade, but is also causing severe problems in the iron and steel market. The iron and steel industry plays an important role in the country's infrastructure projects and construction sector. However, with the increase in security threats, construction projects and production processes are experiencing serious disruptions. Iron and steel production has decreased due to damage to production facilities or operational disruptions.
In addition, the contraction of Yemen's foreign trade is negatively affecting iron and steel imports and exports. Security issues at ports in the region are exacerbating supply chain disruptions, leading to difficulties in sourcing raw materials. In particular, imports of iron ore and other critical raw materials are in short supply, limiting production capacity.
Impacts on Maritime Transportation and Insurance Sector
The maritime transportation and insurance sectors are also facing serious impacts. While maritime transportation insurance premiums have increased due to the risk of war, ship owners and transportation companies face higher costs. The iron and steel industry may experience difficulties in procuring raw materials due to these higher costs, which may disrupt production processes.
The increase in insurance premiums will impose additional financial burdens, especially for transportation in the iron and steel sector, and will further increase costs in the sector. This could further complicate local and international trade, especially in iron and steel products.
These developments in Yemen further deepen the economic instability in the region and increase calls for the international community to do more to find a solution. Moreover, for critical industries such as the iron and steel sector, a climate of peace and confidence is vital for the sector to recover.
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