Bloomberg: Half of Red Sea Container-Ship Fleet Avoids Route After Attacks
Half of the container-ship fleet that regularly transits the Red Sea and Suez Canal is avoiding the route now because of the threat of attacks, according to new industry data.
The tally compiled by Flexport Inc. shows 299 vessels with a combined capacity to carry 4.3 million containers have either changed course or plan to. That’s about double the number from a week ago and equates to about 18% of global capacity.
The diverted journeys around Africa can take as much as 25% longer than using the Suez Canal shortcut between Asia and Europe, according to Flexport. Those trips are more costly and may lead to higher prices for consumers on everything from sneakers to food to oil if the longer journeys persist. T
he attacks in the Red Sea are being carried out by Yemen-based Houthis, who say they’re targeting ships linked to Israel in support of the Palestinians. But ships without direct links to Israel also have been targeted, and as the escalation of the war threatens global trade, a US-led task force is trying to bolster security on the key waterway.
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Update: Hundreds of Ships Diverted as Red Sea Attacks Continue (The Messenger)
WNU Editor: Expect higher costs for almost everything in the coming weeks .... Red Sea shipping workarounds add costs, delays for suppliers, retailers (Reuters).
2 comments:
Who will win at affecting the flow of global trade more:
The entire financial apparatus of the western world issuing sanctions at the same breakneck rate that they're printing dollars?
Or
200 houthiboys with cardboard drones?
Where's the Yemini government?
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