Container freight rates are surging as attacks by Yemen-based
Houthi rebels on cargo ships in the Red Sea have forced shipping giants to send
vessels around southern Africa's Cape of Good Hope, Reuters reported on
Thursday.
According to data tracked by the international shipping
marketplace Freightos, Asia-to-North Europe rates have more than doubled to
over $4,000 per 40-foot container this week, while prices for
Asia-to-Mediterranean shipping have climbed to $5,175.
Some carriers have announced rates above $6,000 per 40-foot
container for Mediterranean shipments starting mid-month, and surcharges of
$500 to as much as $2,700 per container could make all-in prices even higher,
according to Judah Levine, Freightos' head of research, as cited by the agency.
The price leap is attributed to attacks carried out by Yemen-based
Houthi militants across a key artery leading to the Suez Canal, and have so far
forced global shipping majors to send cargo ships on the long journey around
Africa. The prolonged voyages last up to 20 days more, and are leading to a
shortage of container ships.
“People desperate to get space (on
ships), are going to pay,” Christian Sur, executive vice president
for ocean freight at Unique Logistics, told the agency.
Freight rates for shipping to North American ports have been less
affected, but have also risen.
Rates for shipments from Asia to North America's East Coast have
surged 55% to $3,900 per 40-foot container, while West Coast prices have soared
63% to over $2,700 ahead of expected cargo diversions to avoid Red Sea-related
issues, according to Levine.