Vessels anchor at the port of Hodeida, Yemen, on the Red Sea coast. File photo: AFP/VNA

The Institute reported a decrease in daily Red Sea container transport from 500,000 in November to a current 200,000. This indicates that the current volume is 66% below the volume expected, calculated from the freight volume for the years 2017 to 2019, according to the report.

In December, IfW Kiel's trade indicator showed a 2% drop in exports and a 3.1% decrease in imports within the European Union (EU). The US saw a 1.5% decline in exports and a 1% decline in imports.

Contrarily, China's trade showed positive results, with a 1.3% increase in exports and a 3.1% increase in imports. The institute attributed this growth to the approaching Lunar New Year.

To minimize security risks, many major shipping lines, including Maersk and Hapag-Lloyd, have changed to take longer routes through Cape of Good Hope in South Africa.

"The detour of ships due to the attacks in the Red Sea around the Cape of Good Hope in Africa means that the time it takes to transport goods between Asian production centers and European consumers is significantly extended by up to 20 days," Julian Hinz, director of IfW Kiel's Trade Policy Research Center said in the report.