2024-01-07T13:24:18+00:00
A-
A
A+
/ Sea freight prices between the continents of Asia, Europe and America jumped by 173% against the backdrop of attacks carried out by the Houthis in the Red Sea.
According to data issued by Freightos.com, short-term container shipping rates between Europe, Asia and America witnessed a jump in light of the decline in carrying capacity due to the threats facing cargo ships in the Red Sea.
The spot price for shipping goods in 40-foot containers from Asia to Northern Europe jumped to $4,000, compared to the levels before the rerouting in mid-December.
According to the data, the cost of shipping goods from Asia to the Mediterranean increased to $5,175, and some parties requested prices higher than $6,000 for periods starting from mid-January.
Prices from Asia to the East Coast of the United States also rose 55% to $3,900 for a 40-foot container.
The head of research at Freightos said that the cost of services from Asia to northern Europe and the Mediterranean is more than double its levels in January 2019, but is still below its peak during the Corona pandemic.
Another separate price measure, the Drewry World Container Index, showed that the cost of shipping from China to Europe has doubled since December 21, while shipping rates from Shanghai to Los Angeles increased by 30%.
The tensions witnessed in the Red Sea due to Houthi attacks on ships related to Israel, prompted some shipping companies to suspend sailing in the Red Sea and choose the Ras al-Rijal al-Saleh route instead.
A number of companies have also announced additional fees on the goods they transport to and from the Middle East in light of the increased risk.
The International Monetary Fund noted that the Red Sea is a navigational corridor of systemic importance and handles more than 19,000 ships crossing annually, stressing that it has noticed a decline in traffic since the sixteenth of last December.