Rail/Intermodal
The U.S. and several key allies on January 11 conducted military strikes against a number of targets in Yemen that have been used by Houthi rebels to attack commercial vessels in the Red Sea. The initiative came after 27 attacks in recent months on commercial shipping and the diversion of more than 2,000 ships from the Red Sea, according to the White House, which noted that nearly 15% of global seaborne trade crosses through the Red Sea.
The Houthi attacks are not the only factor that is disrupting typical trade routes. A drought in Panama is curtailing transits of larger ships through the Panama Canal. This issue could be one of the factors in why West Coast ports saw a large y/y increase in container imports in November while Gulf Coast ports saw a sizable decrease. Container imports at East Coast ports were up slightly y/y.
