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Houthi attacks on merchant ships from Yemen in the Red Sea and the Gulf of Aden caused significant disruptions on the most important shipping routes.
The cost of transporting goods through the Red Sea and the Suez Canal, a major waterway for global shipping, has risen by more than 300% since November amid Houthi attacks on merchant ships believed to be linked to the Israeli situation, Sky News reported. Referring to data analyzed by global logistics company DSV.
The Shanghai Containerized Freight Index (SCFI), the most commonly used measure of such costs, rose to $3,101 per 20-foot container in one week from $2,871 last Friday. According to the data, the total price of containers shipped from Shanghai to Europe was reported to be 310% higher than the prices at the beginning of November.
The 20, which has pledged to support the Gaza Strip amid ongoing fighting in the enclave between Israel and the Palestinian militant group Hamas, has launched several drones and missiles since mid-October against merchant ships plying the Red Sea and warships patrolling the vital canal. More than two dozen attacks have been carried out, forcing major shipping giants such as MSC, Maersk, CMA CGM and Hapag-Lloyd to divert cargo to the southern tip of Africa, avoiding the Gulf of Aden and Suez – channel.
This rerouting adds more than ten days to the trip and increases insurance bills. At the same time, staff wages have also increased, while longer journeys mean that transport companies have to burn more fuel.
Despite the significant increases, shipping costs are still below levels seen in March 2021, when the 400-meter container ship Ever Given ran aground, blocking the Suez Canal and shutting down the key trade route for six days. Hundreds of ships were stranded in port due to the incident, and the shutdown is reported to have prevented $9 billion in global trade each day.
This week, the United States and the United Kingdom carried out airstrikes against Houthi militias in Yemen in response to the group’s actions in the Red Sea and Gulf of Aden. The move caused mixed international reactions, with many warning that it could lead to an escalation of the conflict in the Middle East.
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