The world’s supply chains are under such threat that world governments may need to implement a new system, if the delivery of goods are to be maintained marine insurance leaders have warned.

Speaking as the International Union of Marine Insurance (IUMI) held its winter meeting in London, Neil Roberts (pic) warned the problems with the Red Sea and Suez Canal coupled with a significant reduction in the capacity of the Panama Canal was at a point where decisions needed to be made.

The attacks by Houthi militia in the Red Sea off the coast of Yemen has been exacerbated by a 30% fall in the amount of rainfall in Panama which has seen Suez Canal transits fall by 50% and vessels allowed to use the Panama Canal fall form around 40 per day to just 18.

The traditional surge of exports from Asia in the run up to this weekend’s Lunar New Year when the region is to have a week of celebration has seen ports and warehouses overflowing with goods that have simply been unable to be transported due to the  long transit times as vessels avoid the two canals and travel via the Cape Of Good Hope in Southern Africa.

Looking at the situation in the Red Sea Roberts, who is chair of the IUMI Policy Committee and head of marine at the Lloyd’s market Association, told journalists: “What we have here is a group with a political aim in a country where they have no direct involvement looking to attack shipping.”

However, Roberts said the crisis has seen governments who relied in the trade for goods struggling to find a solution that would allow safe passage.

“The world’s navies have been asked a question and they haven’t answered as yet,” He warned.

While the US led operation in the region has been welcomed, he said experts still believe that its actions will not be at a level that would remove the Houthi’s ability to attack vessels.

The world’s shipowners were now faced with a “risk and reward” decision to make when it came to whether to use the Suez Canal to ship goods to and from Asia.

“While we have seen ships hit by missiles and drones, we have yet to see a catastrophic event,” he added. “Whether that is by luck or by the weapons used we are not sure. What is sure is that the effects are being felt by the Suez Canal.

“We have seen a 50% reduction in transits with a huge reduction in container vessels and almost all LNG transits.”

For confidence in the ability to use the Red Sea to return Roberts said there would need to be a “sustained period of peace.”

However, he said there was no doubt that the crisis and the Panama Canal access issues was having a huge impact in global trade.

“Regulators may well have to look at a change in the current just in time supply chain strategy to one of just in case,” he added.

IUMI executive committee member Mariella Dauphinee explained the country’s rainy season had been one of the driest in record and as such the canal authorities had been forced to implement tough restrictions.

There were limits on the weight of vessels allowed to transit the canal and the daily numbers that were permitted had fallen from 35-40 per day to a planned reduction to 18 in the coming weeks.

“The trip from China to the US and return would normally take 58 days via the Panama Canal, it is 81 days via the Suez and 88 days via the Cape of Good Hope. The Suez was seen as an option when the concerns around the Panama Canal were raised but the situation has changed.”

The traditional surge of exports from Asia in the run up to this weekend’s Lunar New Year when the region is to have a week of celebration has seen ports and warehouses overflowing with goods that have simply been unable to be transported due to the  long transit times as vessels avoid the two canals and travel via the Cape Of Good Hope in Southern Africa.