Nearly 4,500 kilometers from the Bab Al-Mandab strait, the Red Sea and its missile-ridden skies, the Italian business world is worried. Off the coast of Yemen, ships bound for the Suez Canal are still being attacked by Houthi rebels supporting Hamas, while shockwaves from the disruption of naval traffic are beginning to be felt in the peninsula's ports.

Italy, Europe's second industrial power and the continent's third-largest agricultural producer, handles 54% of its exports by sea, 42.7% of which normally pass through the Suez Canal. Some operators have pulled their ships out of this vital route for world trade, instead routing them around the African continent via the Cape of Good Hope, which means much longer transport times and much higher costs. According to data from the United Nations, the volume of trade passing through the canal has fallen by 42% in two months.

The Confartigianato Study Center, an interest group representing Italian craft and small businesses, released the results of its research to the media. According to the organization, Italy's foreign trade volume has lost €8.8 billion since November 2023: €3.3 billion due to export delays and €5.5 billion linked to the lack of supply of manufactured goods. With the increase in transport times to Asia, Coldiretti, Italy's main agricultural federation, is worried about its fruit and vegetable exports, while representatives of the fashion industry fear they will no longer be able to access their customers.

'Increased inflation risk'

Uncertainty is also mounting on the import front. "Delays in deliveries to industry are slowing down all production lines, particularly in the automotive sector," said Rodolfo Giampieri, president of Assoporti, the organization that represents all Italian port authorities. "Italian ports are very close to the Suez Canal, which is normally one of their assets for shipowners. Now, with the circumnavigation of Africa, cargo ships may be directed to ports in northern Europe, which may no longer have an interest in entering the Mediterranean via the Strait of Gibraltar," he explained. "We must not let this crisis lead certain European ports to think that they can benefit at the expense of others."

According to Assoporti, the Italian port suffering most from the current crisis is Trieste, on the Adriatic Sea. Far beyond the national market, Trieste is directly connected by rail to the markets of Central Europe, the final destination of a large proportion of goods transiting there.

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