Red Sea Houthi Threats Raise Shipping Rates
Maritime freight rates between Asia, Europe and the Americas have jumped by 173% since last November, due to threats by the Yemeni Houthi group to Israeli ships passing through the Bab al-Mandab Strait and the Red Sea.
Maritime freight rates between Asia, Europe and the Americas have jumped by 173% since last November, due to threats by the Yemeni Houthi group to Israeli ships passing through the Bab al-Mandab Strait and the Red Sea. This is a victory for the Gaza Strip, which has been subjected to continuous Israeli aggression since last October 7th, which caused the death of about 23 thousand Palestinians and the injury of more than 58 thousand others, in addition to major destruction.
In a report issued today by the multinational shipping and monitoring company Fretos.com, the shipping industry data indicated that the short-term shipping rates for containers between Asia, Europe and the United States increased by 173%, due to a reduction in capacity, due to ongoing threats to cargo ships in the Red Sea.
The spot price for shipping goods in a 40-foot container from Asia to northern Europe now exceeds $4,000, up from the previous average of $1,900, the company said.
According to the report, the cost of shipping between the Asian and U.S. East Coast markets increased by nearly 55% to $3,900 for the 40-foot container.
"In solidarity with the Gaza Strip, the Houthis have targeted Red Sea cargo ships owned or operated by Israeli companies or transporting goods to or from Israel."
Israeli media reported that the Chinese state-owned shipping giant COSCO has stopped sailing towards Israeli ports.
The Chinese company, which is the world's fourth largest shipping container route and contributes about 11% of world trade, made the move due to rising tensions in the Bab al-Mandab Strait and the Red Sea.
On December 18th, U.S. Defense Secretary Lloyd Austin announced the formation of a 10-nation Maritime Task Force, known as the "Guardian of Prosperity," to counter attacks in the Red Sea.
Maritime trade accounts for 70% of Israel's imports, 98% of its foreign trade passes through the Red Sea and 34.6% goes through Israel's economy, according to the Israeli Ministry of Finance.
The world's two largest shipping companies, MSC and Maersk, have suspended their commercial flights across the Red Sea since mid-December, replacing the South African route Cape of Good Hope.
Source: Agencies
