Red Sea situation freight rates rise sharply!!!

Red Sea situation  freight rates rise sharply!!!

Red Sea situation, freight rates rise sharply.

The situation in the Red Sea continues to deteriorate. Affected by the international situation, all booking operations in the Red Sea have been suspended. No bookings will be made without changes or changes, and new bookings will not be accepted for the time being.

Shipping prices have soared. The Suez Canal-Red Sea, an international shipping artery, guards Asia, Africa and Europe, connects the Red Sea and the Mediterranean, and is one of the busiest waterways in the world. The Bab el-Mandeb Strait is located at the southern end of the Red Sea, connecting the Red Sea and the Gulf of Aden. It is a must-pass for ships traveling between the Indian Ocean and the Atlantic Ocean.

According to statistics, assuming that Singapore is the starting point, the additional shipping distance of a container ship sailing around the Cape of Good Hope will increase by 3,500 nautical miles and the number of sailing days will increase by 8 days. The impact of deviation on freight rates is relatively complex. What needs to be paid attention to is the increase in fuel costs after deviation. However, at the same time, considering the absorption of effective transport capacity by deviation and the high requirements of European line customers for voyage stability, shipping companies need to increase capacity to maintain a reasonable sailing frequency.

The skyrocketing freight rates are not sustainable in the long term, but when it will end depends on the direction of the Red Sea crisis.