Red Sea Crisis Raises Freight Rates and Begins to Generate Container Shortages
The crisis in the Red Sea is significantly impacting international trade, raising freight rates, and causing container shortages. According to the Batic Freightos Index (FBX), spot rates on the Asia – Northern Europe route increased by 8%, reaching US$4,757/FEU, while rates on the Asia – Mediterranean route rose by over US$1,000, reaching approximately US$6,700/FEU.
Shipping lines have introduced general rate increases and suspended negotiations for long-term contracts. Experts predict that rates will peak before the Chinese New Year. The crisis has led to route diversions and creative measures, such as land-based cargo services.
Additionally, Houthi missiles have caused container shortages, affected transit times, and increased greenhouse gas emissions due to longer routes. The current disruption has also led to increased air cargo, with volumes from Vietnam to Europe rising by 16% compared to the same week last year. According to the Freightos Air Index, rates on the China – Northern Europe route increased to US$3.55/kg, returning to late December levels, while rates between China and North America decreased by 8% to US$5.36/kg.
To Read the Full Article: https://www.mundomaritimo.cl/noticias/crisis-del-mar-rojo-eleva-tarifas-de-flete-y-comienza-a-generar-escasez-de-contenedores