Mostly ten percent of Germany's sea imports arrive via the Red Sea route

A new report commissioned by the Federal Ministry of Economics and created by the ifo Institute and Katharina Erhardt from the University of Düsseldorf has highlighted the significance of six central maritime bottlenecks for German foreign trade. The study quantifies the dependence of German imports and exports on these chokepoints, which include the Strait of Hormuz, the Strait of Bab al-Mandab, the Strait of Malacca, the Taiwan Strait, the Suez Canal, and the Panama Canal.

The trade volume of German imports via the Red Sea was 136 billion euros in 2023, according to the report. Ifo trade expert Lisandra Flach states that the sea passage via the Red Sea is of particular geoeconomic importance for Germany. Various critical raw materials and important intermediate products for industry arrive in Germany via the Red Sea. However, the report does not provide information about the share of German exports that use the Red Sea as a trade route.

The report also reveals that 8.7% of German imports arrive via the Malacca Strait, while the significance of the Panama Canal for German foreign trade is low, with only 0.5% of all imports in 2023. The significance of the Strait of Hormuz and the Suez Canal is relatively low, with only 0.4% and 1.1% of all imports, respectively.

The most significant destinations for German exports passing through these chokepoints are the United States, France, and the Netherlands. The United States is the largest export market in 2024, valued at 161.4 billion euros, followed by France and the Netherlands.

Blockades or disruptions of strategic sea routes like the Suez Canal or the Strait of Bab al-Mandab can have significant economic consequences for Germany. The report, however, does not discuss any potential solutions or strategies to mitigate the risks associated with this dependence on these maritime bottlenecks.

It is important to note that the views expressed in the report do not necessarily reflect the views of the Federal Ministry of Economics or the Minister. The report does not mention any other sea routes or their significance for German foreign trade besides the six central maritime bottlenecks mentioned earlier. Furthermore, the share of German imports that arrive via the Red Sea was not specified in the previous facts.