Global shipping rates skyrocket as Red Sea crisis deepens

foxbusiness.com:

Alba Wheels Up International founder Salvatore Stile breaks down the impact that Houthi rebel attacks have had on international and domestic business.

Global shipping rates are skyrocketing as the Iran-backed Houthi militants in Yemen step up their attacks on commercial shipping vessels in the Red Sea, a critical waterway for world trade.

New data from Freightos Terminal released Friday shows that rates for shipping goods from Asia to Northern Europe surged 461% compared to mid-October, before the diversion of vessels in the region began. Rates on the route from Asia to the North American East Coast and to the North American West Coast have also skyrocketed, climbing a respective 130% and 97% since the end of October.

Carriers have also announced surcharges that range from $500 to as much as $2,700 per container.

About 15% of world shipping traffic, including 30% of global container trade, passes through the Suez Canal to and from the Red Sea. But to avoid being attacked or having their cargo stolen, many ships are instead sailing around the Cape of Good Hope, which is the long way around Africa. The Houthi attacks on commercial ships have not stopped even after the U.S. and the U.K. launched strikes against Houthi assets in Yemen. The group has said the attacks are a response to Israel’s military campaign against Hamas in the Gaza Strip.

NAVY CONFIRMS IRAN'S INVOLVEMENT IN YEMEN HOUTHI REBEL SHIP ATTACKS

A cargo ship passes through the Suez Canal in Ismailia, Egypt, on Dec. 29, 2023. (Fareed Kotb/Anadolu via Getty Images / Getty Images)

«This has added significant cost, and also significant delays, to shipments that are coming from the Middle East, to and from Europe and other regions in that area that rely on the