Margaux Fodéré / Photo credits: FAREED KOTB / ANADOLU / ANADOLU VIA AFP
With the conflict between Israel and Hamas, the Houthi rebels have been attacking commercial ships in the Red Sea for several weeks now. This forces shipowners to divert their routes, causing an explosion in sea freight rates.
This is another consequence of the conflict between Israel and Hamas: the disruption of maritime traffic at the Suez Canal. For several weeks, Houthi rebels have been attacking commercial ships in the Red Sea, forcing them to divert their route. This results in an explosion in sea freight rates. In mid-January, the French shipowner CMA CGM, the third largest shipowner in the world, doubled its rates for trade between Asia and the Mediterranean. And all global economic activity is starting to feel the effects.
Prices multiplied by four
The Suez Canal is one of the busiest shipping lanes in the world. Around fifty ships use it every day, particularly for the transport of oil, or various products such as clothing or furniture. And while some ships continue to pass through the northern Red Sea, the vast majority of container ships divert their route to the Cape of Good Hope, in the south of Africa.
As a result, sea freight rates are increasing, as explained by Jérôme de Ricqlès, maritime expert at Upply. “We are observing a very sharp increase in insurance premiums for the passage of commercial ships representing American or English interests in the Suez Canal zone and the Red Sea. This almost pushes most of the traffic to make the grand tour for the Cape of Good Hope”, he assures at the microphone of Europe 1.
Concretely, for a standard 40-foot container, which transits from Shanghai to Le Havre, the rates have been multiplied by four, or even more. And that’s not all: longer transport times are starting to disrupt the economy. Like the Tesla factory in Germany, which is preparing to temporarily suspend production due to the shortage of components. Gas deliveries from Qatar could also be delayed.