2024-01-04T05:25:29+00:00
A-
A
A+
/ Sea freight prices have risen again, after a missile attack and an attempt to detain a Maersk ship at the weekend, which prompted shipping companies to suspend plans to resume crossing the Red Sea, which is a main artery that leads to the Suez Canal.
The Houthis in Yemen have been attacking high-value cargo ships in the Red Sea since November to show support for the Palestinian Hamas movement, which is in its war against Israel in Gaza.
The attacks forced ships to change course around the southern tip of Africa, raising the costs of this longer journey, but prices are still well below the levels they reached in 2021 during the Covid-19 pandemic.
The Egyptian Suez Canal connects the Red Sea to the Mediterranean, and is the fastest way to ship fuel, food and consumer goods from Asia and the Middle East to Europe. Shipping companies use this route to transport up to a third of total global container shipments, carrying goods such as toys, tennis shoes, furniture and frozen food.
The attacks have already led to delays in the delivery of products intended for many companies, as companies such as Walmart, IKEA, and Amazon use the Suez Canal route.
According to the international shipping booking and payment platform (Fretos), shipping prices from Asia to Northern Europe more than doubled, exceeding four thousand dollars per 12-meter container this week, and prices from Asia to the Mediterranean increased to $5,175.
Some shipping companies have announced rates of more than $6,000 per 12-meter container for Mediterranean shipments starting mid-month, and surcharges ranging from $500 to $2,700, Judah Levin, head of research at Fritos, said in an email. Dollars per container can make overall prices even higher.
As of Wednesday, hundreds of container ships and other vessels had been rerouted to take the Cape of Good Hope route in South Africa to avoid attacks, adding between a week and twenty days to their journeys.
Logistics executives said so-called one-time “spot” rates are roughly twice the freight rates that move in the contract market.
“Those who are desperate for space (on ships) will pay,” said Christian Suhr, executive vice president of ocean freight at Unique Logistics.
Shipping rates to less affected North American ports are also rising.
Up to 30 percent of goods arriving on the East Coast of the United States pass through the Suez Canal.
Logistics executives expect some of these imports to be diverted to the US West Coast, a direct trans-Pacific destination from China and other Asian exporters.
Prices for shipments from Asia to the east coast of North America rose by 55 percent, reaching $3,900 per 12-meter container. Levin said that prices for the West Coast jumped 63 percent, exceeding $2,700, before the expected rerouting of goods to avoid problems related to the Red Sea.
Despite the rise in prices, they are still far below the record levels resulting from the pandemic in 2021, which amounted to $14,000 per 12-meter container heading from Asia to northern Europe and the Mediterranean, and $22,000 from Asia to the east coast of North America.