10.01.2024, 09:51
Sea transportation has risen sharply due to the conflict in the Red Sea
Source: OREANDA-NEWS
OREANDA-NEWS Shipping tariffs have risen sharply due to attacks by the Yemeni Houthis. This is reported by The Wall Street Journal.
Due to the need to circumnavigate the conflict region in the Red Sea, travel delays began to be measured in weeks. Due to the drone attacks and missile attacks, sea carriers increased the prices of their services and began to impose additional fees. Transportation of 40-foot containers has almost doubled in price since the end of November 2023. The cost of shipping containers between China and Rotterdam reached $3,577 by January 4 (plus 115 percent per week).
Since November, Houthi rebels have carried out about 20 attacks on commercial vessels plying the Red Sea, which provides access to trade routes to Western Europe and the United States and the Suez Canal, which is used for a third of the world's container traffic and about a third (30 percent) of cargo bound for ports on the East Coast of the United States. A.P. Moller-Maersk and Hapag-Lloyd said their vessels would avoid the conflict region.
According to industry representatives, high costs hit all importers, even those who have signed long-term transportation contracts, as operators charge additional fees to cover the costs. Additionally, the problems of shippers are exacerbated by the drought in Panama, which limits the number of ships that can pass through the local channel.
The need to circumnavigate the African continent increases fuel and insurance costs, which reduces the availability of container transportation, said Lars Jensen, executive director of the Danish consulting firm Vespucci Maritime. According to Singapore and London brokers, in December, the number of container shipments across the Red Sea decreased by about 20 percent on a monthly basis.
Yemeni Houthi rebels have promised to strike at Israeli territory and attack ships associated with it in the Red Sea and the Bab el-Mandeb Strait due to the aggravation of the Palestinian-Israeli conflict in the Gaza Strip. The attacks will not stop until the operation in Palestine is stopped.
After the missile attack on the container ship Maersk Gibraltar by the paramilitary group Ansar Allah on December 15, the Danish company Maersk suspended work in the Red Sea. The cargo was decided to bypass the African continent. The company has also introduced additional charges for transportation from Asia. You will have to pay $500 extra for a standard 20-foot container traveling from China to North America, $ 700 for a container heading to Northern Europe.
The US authorities have made attempts to convince shipping companies of the safety of passage through the Red Sea and the Suez Canal, as multinational forces ensure the safe navigation of ships. The Pentagon announced "daily interaction" to protect ships.
Due to the need to circumnavigate the conflict region in the Red Sea, travel delays began to be measured in weeks. Due to the drone attacks and missile attacks, sea carriers increased the prices of their services and began to impose additional fees. Transportation of 40-foot containers has almost doubled in price since the end of November 2023. The cost of shipping containers between China and Rotterdam reached $3,577 by January 4 (plus 115 percent per week).
Since November, Houthi rebels have carried out about 20 attacks on commercial vessels plying the Red Sea, which provides access to trade routes to Western Europe and the United States and the Suez Canal, which is used for a third of the world's container traffic and about a third (30 percent) of cargo bound for ports on the East Coast of the United States. A.P. Moller-Maersk and Hapag-Lloyd said their vessels would avoid the conflict region.
According to industry representatives, high costs hit all importers, even those who have signed long-term transportation contracts, as operators charge additional fees to cover the costs. Additionally, the problems of shippers are exacerbated by the drought in Panama, which limits the number of ships that can pass through the local channel.
The need to circumnavigate the African continent increases fuel and insurance costs, which reduces the availability of container transportation, said Lars Jensen, executive director of the Danish consulting firm Vespucci Maritime. According to Singapore and London brokers, in December, the number of container shipments across the Red Sea decreased by about 20 percent on a monthly basis.
Yemeni Houthi rebels have promised to strike at Israeli territory and attack ships associated with it in the Red Sea and the Bab el-Mandeb Strait due to the aggravation of the Palestinian-Israeli conflict in the Gaza Strip. The attacks will not stop until the operation in Palestine is stopped.
After the missile attack on the container ship Maersk Gibraltar by the paramilitary group Ansar Allah on December 15, the Danish company Maersk suspended work in the Red Sea. The cargo was decided to bypass the African continent. The company has also introduced additional charges for transportation from Asia. You will have to pay $500 extra for a standard 20-foot container traveling from China to North America, $ 700 for a container heading to Northern Europe.
The US authorities have made attempts to convince shipping companies of the safety of passage through the Red Sea and the Suez Canal, as multinational forces ensure the safe navigation of ships. The Pentagon announced "daily interaction" to protect ships.
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