The shipping industry is grappling with a significant escalation in costs, with freight rates between Asia and Europe, as well as the Americas, surging by a staggering 173% since last November.
This surge is primarily attributed to the ongoing crisis in the Red Sea, according to a report released by the multinational company “Freightos.com,” specializing in shipping operations and data analytics.
Freightos.com highlighted that the skyrocketing container shipping prices are a direct consequence of reduced capacity due to persistent threats to cargo vessels navigating the Red Sea.
Specifically, the immediate cost of shipping a 40-foot container from Asia to Northern Europe now exceeds $4,000, a sharp increase from the previous average of $1,900, as reported by the company.
Additionally, the report indicated that shipping rates between Asian markets and the East Coast of the United States have surged by approximately 55%, reaching $3,900 for a 40-foot container.
This dramatic increase underscores the challenges faced by the shipping industry amid geopolitical tensions and security threats in vital maritime routes.
The situation has been exacerbated by the Houthi rebels in Yemen, who have targeted high-value cargo ships in the Red Sea since November, purportedly in solidarity with Hamas, which is engaged in conflict with Israel in Gaza.
The escalating crisis has raised concerns about the sustainability of global supply chains and the broader economic implications for international trade.
