Global shipping rates surge amidst US, UK airstrikes on Yemen
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Industry officials expressed concerns about the potential for extended disruptions in global trade in the Red Sea, one of the world's busiest maritime routes.
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The container ship 'Maersk Bratan' photographed in June 22, 2022, in Hamburg, Germany (AFP)
Container shipping rates on major global routes have witnessed a significant spike this week, fueled by US and UK airstrikes on Yemen, Reuters reports.
Industry officials expressed concerns about the potential for extended disruptions in global trade in the Red Sea, one of the world's busiest maritime routes.
Overnight, US and British warplanes, ships, and submarines carried out multiple aggressions across Yemen. These military actions were in response to operations led by the Yemeni resistance in support of Palestine. The Yemeni resistance vowed to continue attacking Israeli-linked ships in the Red Sea until the genocide on the people of Gaza comes to a complete halt.
The benchmark Shanghai Containerized Freight Index surged over 16% week-on-week, reaching 2,206 points on Friday, reflecting the intensity of the disruptions.
According to leading ship brokerage company Clarksons, rates on the Shanghai-Europe route increased by 8.1% on Friday, reaching $3,103 per twenty-foot equivalent unit (TEU) compared to the previous week.
Meanwhile, the shipping rate for containers bound for the US West Coast experienced a substantial 43.2% surge, reaching $3,974 per forty-foot-equivalent-unit (FEU) on a weekly basis.
Peter Sand, Chief Analyst at the freight platform Xeneta, commented on the situation, stating, "The longer this crisis persists, the more disruption it will cause to ocean freight shipping across the globe, and costs will continue to rise."
"We are looking at months rather than weeks or days before this crisis reaches any kind of resolution," he added.
Read more: Container Ship in Red Sea: Destination is 'Not Israel'!
Earlier this month, a report by Bloomberg revealed a staggering 173% increase in the spot price for container shipping driven by disruptions caused by the Yemeni resistance in the Red Sea.
Freightos.com data indicates that the spot rate for shipping a 40-foot container from Asia to northern Europe surpassed $4,000 in mid-December, prompting concerns across the industry.
Freightos reported on Wednesday that shipping costs from Asia to the Mediterranean soared to $5,175, with carriers hinting at prices exceeding $6,000 for this route starting in mid-January.
Simultaneously, rates from Asia to North America's East Coast experienced a 55% surge, reaching $3,900 for a 40-foot container.
