Global conflicts and the impact of climate change are driving up the costs of shipping worldwide, underlining concerns over the fragility of international supply chains and stoking inflation. The wars in the Gulf and Ukraine have essentially shut off some of the world’s key passageways for global commodities, while extended droughts have restricted travel through the key arteries such as the Panama Canal.
The strangleholds have forced some to seek viable alternatives elsewhere: Gulf nations are pushing for new pipelines to skirt the Strait of Hormuz, while Mexico is pitching a land route that it argues can serve as an alternative to the Panama Canal, where the impact of the El Niño weather system threatens to reduce crossings even further.
