I have recently been looking into and been surprised by the importance of maritime transportation. Roughly 85% of global trade by volume moves via ships, making oceans the backbone of the global economy. 

People have been moving goods via ships for centuries and that has not changed. What has changed is the vulnerability of this critical form of transportation. Maritime experts warn that over the past few years in particular, we have multiple chokepoints under simultaneous stress. The Panama Canal, a critical route for U.S. trade, has seen capacity fall between 10% to 50% due to varying drought conditions that began in 2023. The Black Sea has been destabilized since 2022 when the Russia/Ukraine war began, reducing reliable grain and energy exports. The Strait of Hormuz has constrained roughly 20% of global oil and liquified natural gas flows amid escalating tensions. The Bab el-Mandeb Strait, critical for trade between Asia and Europe and which carries 10–15% of global trade, remains exposed to ongoing Houthi attacks.  

These disruptions matter because, while the U.S. is less trade-dependent than many economies, it is still deeply integrated. Roughly 20% to 30% of goods consumed in the U.S. are either imported or contain imported components, representing about $2 trillion to $3 trillion. That means even partial disruptions to shipping lanes can ripple quickly through supply chains.

The result is upward pressure on prices. Rerouting ships around bottlenecks can add 10–15 days to delivery times, increase fuel usage and raise insurance costs. 

The recent military escalation in the Middle East prompted me to look into maritime trade. Experts state that about 70% of vital global energy resources are transported via ships. And while the U.S. is less import dependent than other nations, we need to remember that U.S. oil producers trade globally and those prices are set globally. 

This is why we are seeing gas at the pump over $4 per gallon and prices diesel, typically used for freight trucks, ships, buses and agricultural equipment, at over $5 per gallon. 

Tatiana Bailey is executive director of the nonprofit Data-Driven Economic Strategies. Other Gazette articles, TV segments, DDES monthly economic dashboards with technical explanations, and how to sponsor their work can be found at ddestrategies.org.