It costs a million dollars to divert a ship so that it does not enter the war conflict in the Suez Canal

The transit of cargo ships through the Suez Canal cThey were at the lowest level yesterday since the Ever Given blocked the waterway nearly three years ago, revealing that attacks on ships near the Red Sea are redirecting global trade onto a longer and more expensive route for shipping companies.

“Almost a third of the world’s container cargo ships transit the Suez Canal, so the rerouting is expected to cost up to an additional $1 million in fuel for each round trip between Asia and Northern Europe,” reveals the Argentine Investment and International Trade Agency.

He adds that leading international freight companies Maersk and Hapag-Lloyd have decided to avoid the Red Sea route that gives access to the Suez Canal.

“This is due to repeated attacks on cargo ships of these companies by Houthi militants located in Yemen,” he says. For several days, the flow of freight transport has been diverted through the Cape of Good Hope, in South Africa.

The shipping industry entered 2024 facing significant challenges that are reconfiguring global trade routes, with direct implications on the global economy.

Osama Rabie, president of the Suez Canal Authority, says that the attacks carried out by the Houthis from Yemen against ships in the Red Sea are having a “significant” impact on the transit of cargo ships.

Revenue from crossing the Suez Canal fell 40 percent during the first two weeks of 2024, compared to the same period in 2023.

The Suez Canal is the safest and cheapest route, when compared to traveling to the Cape of Good Hope. The Houthis, backed by Iran, have controlled Yemen’s capital, Sanaa, and other areas in the north and west of the country since 2015.

The group has responded to the Israeli offensive against the Gaza Strip, unleashed after the assaults carried out on October 7 by the Islamic Resistance Movement Hamas, attacking boats with some type of connection with Israel – with more than 25 potatoes to date , including the hijacking of the ship Galaxy Leader.

The Suez Canal Authority recognizes a “significant” impact from the Houthi attacks in the Red Sea. The Suez Canal and the Panama Canal are undergoing changes that force large shipping companies to rethink their usual itineraries, says the Argentine International Trade and Investment Agency.

“Both the geopolitical instability in the Red Sea region and the adverse weather conditions in Central America are altering the dynamics of maritime container transport,” he says.

“These events not only affect shipping companies, but also have the potential to impact the global supply chain,” concludes the Argentine Investment and International Trade Agency.