In the past two weeks, a growing number of shipping vessels have been rerouted away from the Suez Canal due to heightened security risks, leading to a significant 40% year-on-year drop in wheat shipments through the Canal, according to the latest data from the WTO Wheat Dashboard.
The Wheat Dashboard, a collaborative initiative by the World Trade Organization (WTO) and the International Grain Council, revealed that approximately 0.5 million metric tonnes of wheat passed through the Suez Canal during this period, marking a sharp decline from the previous year.
Annual shipments of grains, oilseeds, and oilseed products from the European Union, the Russian Federation, and Ukraine to Asia and Eastern Africa, which account for 17% of global trade in these commodities, have faced disruptions due to the recent rerouting trend.
The data highlights that in December 2023, 8% of wheat shipments from the mentioned regions to selected Asian countries and Eastern Africa were redirected via alternative routes, a notable increase from the 3% average before December. However, during the first half of January, the share of shipments using alternative routes surged to an unprecedented 42%.
Wheat shipments from the EU via alternative routes reached 330,000 metric tonnes from December to mid-January, compared to 50,000 metric tonnes during the same period the previous year. Additionally, the Russian Federation saw approximately 190,000 metric tonnes of wheat diverted through alternative routes during this period, compared to none in the previous year. Notably, all shipments from Ukraine continued to transit through the Suez Canal during December and January.
The data also indicates a slowdown in global seaborne wheat imports in recent months compared to the previous year, with the cumulative volume at mid-January slightly lower year-on-year. This contrasts with a 17% year-on-year increase as of end-August 2023 and a 6% rise as of end-October.
Despite the challenges, world wheat trade has demonstrated resilience against recent market shocks, including the COVID-19 pandemic and Black Sea hostilities. The Wheat Dashboard, launched in May 2023, serves as an essential tool for providing comprehensive bi-weekly updates on international seaborne trade in wheat, representing over 80% of total traded volumes and addressing global concerns about food security.
