Red Sea Crisis Rises, Ships Continue To Be Detoured

Exporting countries, including Asia, now face another hurdle in rising freight rates due to the recent Red Sea-Suez Canal crisis. Because it costs more to ship goods to Europe, its main market.

Global shipping giant Maersk announced on the 5th that the evolving situation in the Red Sea region remains highly tense and full of uncertainty. All available intelligence confirms that security risks remain at a significantly elevated level. As a result, all company ships will no longer transit the Red Sea for the foreseeable future and customers are warned to prepare for severe supply disruptions.

Shipping routes have been depleted and freight rates have soared.

Industry insiders pointed out that because a large number of ships chose to bypass the Red Sea and take the Cape of Good Hope, the voyage was extended by three to four weeks. This means ships and empty containers may not be able to return to Asia in time to load cargo. There may be a shortage of ships and containers around the second half of January.