More than 100 container ships have changed their Red Sea route to the Cape of Good Hope at the southern tip of Africa to avoid attacks by the Houthi rebels off the coast of Yemen, but this has resulted in increased costs and shipping delays. There is. The United States is considering ways to respond to the Houthi attack, which threatens the global economy.
According to shipping giant Kuehne + Nagel, 103 container ships have been rerouted via the Cape of Good Hope. Companies have also started considering rail and air routes, saying the Red Sea route, through which 12% of seaborne trade normally passes, is too dangerous.
Shippers are bracing for weeks of turmoil as the U.S. negotiates positions, including the option of attacking Yemen. Insurance premiums for shipping via the Red Sea have soared, and in addition to freight rates, oil prices have also risen. All of this could push up inflation.
Toby Ballance, a member of the executive committee of the London Insurance Lawyers’ Forum, said: “Whether we choose to increase premiums or switch to the African route, there will be a second-order impact on product prices.”
Container ships bound for western Europe are heading about the southern tip of Africa, avoiding the threat of attacks in the Red Sea. The detour adds 10-14 days to the journey.
The United States has announced it will launch a new multinational force with allies to protect commercial shipping in the Red Sea, but the timing is unclear. The United States and its allies are considering the possibility of a military strike against the Houthis, but a diplomatic approach is preferred for now, according to people familiar with the matter.
Some countries, including Saudi Arabia, fear that a military attack could make the Houthis, who have a large number of ballistic missiles, more aggressive.
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news-rsf-original-reference paywall">Original title:A Hundred Container Ships Reroute as US Weighs Red Sea Response(excerpt)
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2023-12-21 03:37:55
