COSCO stopped shipments to Israel

Chinese shipping company COSCO has decided to stop shipments to Israel, Israeli financial news site Globes reported. The decision comes as shipping lanes in the Red Sea are disrupted due to attacks carried out by the Iran-backed Houthis in Yemen.

While the attacks of the Houthis endanger the passage through the Suez Canal, which connects the Mediterranean to the Red Sea, offering the shortest route between Europe and Asia, and through which approximately 12 percent of global trade is carried out, the attacks on commercial ships in the Red Sea and the successive decisions taken by companies are affecting the global economy. It increases concerns that a new “supply chain crisis” will begin in the economy.