The cost of container transportation from Asia to Europe has doubled amid the crisis in the Red Sea, which is associated with the increasing frequency of rocket attacks on merchant ships by Yemen’s rebels, the Houthis.
According to Freightos, a freight booking platform, in order to deliver a forty-foot container from Asia to the north of Europe, it is necessary to pay twice as much today, namely $4,000, and delivery of the same container to the Mediterranean region, where ships traditionally have passed through the Red Sea and through the Suez Canal, will cost $5,175.
The price increase was caused by the redirection of ships by numerous carriers to bypass the Red Sea and the Suez Canal: container ships are rounding Africa from the south. Due to this, voyages are extended by 7–20 days, which triggers a shortage of container ships.
Source: Reuters