THE United Nations trade body warned on Thursday that global trade is being hit hard by attacks in the Red Sea, the war in Ukraine, and low water levels in the Panama Canal.

Jan Hoffmann, a trade expert at the UN Conference on Trade and Development (UNCTAD), warned that shipping costs have already surged and energy and food costs are being affected, raising inflation risks.

Since attacks by Yemen's Houthi-led government on ships in the Red Sea began in November, he said, major players in the shipping industry have temporarily stopped using Egypt’s Suez Canal, a vital route for energy and cargo between Asia and Europe.