Shipping rates via Red Sea surge by 310% amid region militarization
2 Min Read
The costs of cargo transport especially went through the roof after the US and the UK launched their aggression on Yemen.
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The Container ship Maersk Bratan at the terminals of HHLA (Hamburg Port Logistics Inc) in Hamburg on June 22, 2022 (AFP)
Shipping costs through the Red Sea soared 310% since last November as the United States and the UK continue to deploy their strike groups in the strategic global trade waterway, with aims to protect Israeli interests from Yemeni operations.
In November 2023, Sanaa declared a ban on all vessels affiliated with "Israel" or bound to it from passing through the Red and Arabian seas toward the Suez Canal, in response to the ongoing Israeli genocide in Gaza and in support of the Strip's people.
Read more: Ships in Red Sea distinguishing themselves from Israeli vessels
On the other hand, the United States was the entity's main supporter and partner in the war on Gaza, which saw Washington shutting down several UNSC resolutions for a ceasefire. In that context, the US repeatedly warned Sanaa to stop the operations.
The Shanghai Containerized Freight Index (SCFI), the prevailing gauge for maritime transport expenses, surged to $3,101 per 20-foot container, marking a significant 16% increase from the $2,871 recorded just the previous Friday, and a 310% surge in the total cost of transporting a container from Shanghai to Europe compared to prices at the outset of November.
Read more: CNBC: Ocean freight rates skyrocket amid Red Sea developments
After establishing a now-dead maritime war coalition in the Red Sea, the world's largest shipping firms began suspending navigation through the waterway, fearing that the militarization of the region would soon turn it into a war zone, especially after the US killed 10 Yemeni Navy forces in the Red Sea waters.
This was further intensified after the US and Britain carried out aggressions on Yemen on Friday and Saturday, with Sanaa vowing an inevitable response, leading to more shipping companies announcing the rerouting of their vessels away from the Red Sea and around Africa.
