Agri-commodities sector on edge as Red Sea troubles continue

ESCALATING tensions in the Red Sea could push up prices of agri commodities across the board and reintroduce volatility into a sector that was initially poised to have a less troubling year, market watchers said. 

Attacks on commercial shipping in the Red Sea by Houthi rebels in Yemen since mid-November have affected passage through the Suez Canal – the shortest maritime route between Asia and Europe.

This has compounded disruptions to shipping routes and supply chains, which for months already had to grapple with a drought-stricken Panama Canal.