Experts discuss Houthi attacks impact on Red Sea shipping and food prices

The United Nations meeting on July 23, 2025, focused on the pressing issue of food security in light of global shocks, particularly the impact of conflicts on international shipping routes. A significant point of discussion was the Houthi attacks on shipping in the Red Sea and their implications for food prices.

A participant raised a question regarding the extent of these attacks on food prices and whether a cessation of hostilities would lead to a decrease in costs. In response, experts highlighted the critical role of logistics in the food supply chain, especially for cereals and high-value commodities. They noted that the market for these goods is highly concentrated, with only a few countries responsible for a large share of global supply.

The discussion emphasized that disruptions in major shipping routes, such as those caused by the Houthi attacks, can lead to increased logistical costs and longer delivery times. Historical examples were cited, including the congestion in the Panama Canal due to drought and similar issues in the Black Sea. Such disruptions not only raise transportation costs but also affect insurance rates for shipping vessels, further driving up prices.

The meeting underscored the interconnectedness of global food supply chains and the significant impact that geopolitical conflicts can have on food security and pricing. As the session concluded, participants acknowledged the need for ongoing monitoring of these issues and the importance of restoring safe shipping routes to stabilize food prices in the future.