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(Washington Post) David J. Lynch - The continuing attacks by the Houthis in Yemen, militants backed by Iran, on container ships and oil tankers passing through the Red Sea, have increased global shipping costs and caused cargo carriers or their clients to opt for longer alternate routes. Almost 1/5 of U.S. freight arrives at East Coast ports after transiting the Red Sea and the Suez Canal, according to Moody's. Solar panels, electric-vehicle batteries, toys and vacuum cleaners are among the goods making that trip. Automakers Tesla and Volvo said in recent days that they would idle plants in Germany because of a parts shortage linked to the disruption. British oil major Shell halted all shipments through the Red Sea. Ami Daniel, CEO of Windward, a maritime intelligence company based in London, expects that the Suez Canal will effectively be closed to international shipping. Sending a ship through the canal will now cost $3-5 million, including higher insurance charges, security, and danger pay for the crew. Diverting around southern Africa, which adds seven to nine days to the trip from Asia, could cost $2 million for the same type of ship, he said. 2024-01-18 00:00:00Full Article
Houthi Attacks Are Starting to Reshape Shipping Flows
(Washington Post) David J. Lynch - The continuing attacks by the Houthis in Yemen, militants backed by Iran, on container ships and oil tankers passing through the Red Sea, have increased global shipping costs and caused cargo carriers or their clients to opt for longer alternate routes. Almost 1/5 of U.S. freight arrives at East Coast ports after transiting the Red Sea and the Suez Canal, according to Moody's. Solar panels, electric-vehicle batteries, toys and vacuum cleaners are among the goods making that trip. Automakers Tesla and Volvo said in recent days that they would idle plants in Germany because of a parts shortage linked to the disruption. British oil major Shell halted all shipments through the Red Sea. Ami Daniel, CEO of Windward, a maritime intelligence company based in London, expects that the Suez Canal will effectively be closed to international shipping. Sending a ship through the canal will now cost $3-5 million, including higher insurance charges, security, and danger pay for the crew. Diverting around southern Africa, which adds seven to nine days to the trip from Asia, could cost $2 million for the same type of ship, he said. 2024-01-18 00:00:00Full Article
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