A ship sails through the Suez Canal toward the Red Sea in Ismailia, Egypt, on January 10, 2024. Photo: Sayed Hassan/Gettyimages.
Average shipping costs continue to rise, more than doubling worldwide in the last month, the Wall Street Journal reports.
According to data from Drewry Shipping Consultants, the global average cost of transporting a 40-foot container (about 3,750 kilos) rose 23% to $3,777 in the week of January 18. This number is more than double what it was on December 21, 2023, when the cost was $1,660.
However, as the publication highlights, growth is also taking place beyond the disrupted trade routes between Europe, Asia and the US. It is observed that the price of shipping a container from China to the West Coast of the USA has increased. The US rose 38% in the week of January 18 to $3,860.
“Volatility has returned to international container shipping in a big way,” said Philip Damas, group managing director of Drewry Shipping Consultants.
In his view, large companies that have long-term contracts with shipping companies are largely immune to fluctuations in the spot market, but pay additional fees of 20% or more on contracted rates to offset higher transportation costs.
Increasing attacks by the Houthis on cargo ships and tankers traveling through the Red and Arabian Seas have forced shipping companies to suspend operations in the region or change routes to avoid transiting close to Yemen's coast.
A safer route around the Cape of Good Hope is more expensive and lengthens journeys, requiring thousands of additional kilometers when traveling between Europe and Asia.
Since January 11, the United States and its allies have carried out regular attacks on Houthi military facilities in Yemen.
(Taken from RT Spanish)