TRIBUNJOGJA.COM – Attacks by the Houthi group in Yemen on cargo ships sailing in the Red Sea prompted a number of shipping companies to divert their ships’ routes.
A number of companies have even chosen not to sail for the time being.
On Thursday (21/12/2023), American shipping company Flexport Inc. officially announced hundreds of its cargo ships were diverted from the Bab el-Mandeb Strait in the Red Sea.
A total of 170 container ships diverted their route to Africa.
Meanwhile, 35 other ships were anchored and not sailing, waiting for instructions from their operational companies.
The ships’ route was changed from the Bab el-Mandeb strait to the Cape of Good Hope.
This redirection is to avoid potential attacks.
By diverting routes, transportation costs increase and delivery times become long.
Quoted from Tribunnews.com, on the same day, Bloomberg reported that the cost of moving goods in a 40-foot container from Asia to northern Europe jumped 16 percent over the past week, quoted from Anadolu.
According to the Drewry World Container Index, the cost of moving goods in December rose by 41 percent.
Not only that, the cost of fuel transportation bills has also increased.
Several major oil companies and tanker companies have said they will avoid the southern Red Sea.
Also read: Thousands of Al Houthi Militants Head to Gaza, Accompanied by Gunfire Along the Road
Meanwhile the switch in routes means ships carrying everything from toys and car parts to gas, fuel and crude oil are feeling the pinch.
Bloomberg also reported that if this happens for several weeks, costs will increase and goods to be sent will be delayed.
Source: Tribunnews
2023-12-23 03:03:00
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