Shipping fees between Asia, Europe, and the Americas have jumped by 173% since last November, due to the Yemeni Houthi group’s threats to Israeli ships passing through the Bab al-Mandab Strait and the Red Sea, in support of the Gaza Strip, which has been subjected to continuous Israeli aggression since October 7. The first, last year, caused the death of about 23,000 Palestinians and the injury of more than 58,000 others, in addition to great destruction.
In a report issued today by Freitos.com, a multinational company specialized in shipping operations and monitoring data related to the sea transport industry, it was stated that short-term container shipping prices between Asia, Europe and the United States increased by 173%, due to the decrease in carrying capacity, as a result of Continuing threats to cargo ships in the Red Sea.
The spot price for shipping goods in a 40-foot container from Asia to Northern Europe now exceeds $4,000, up from an average of $1,900 previously, according to the company.
According to the report, the cost of shipping between the Asian markets and the American East Coast rose by approximately 55% to $3,900 for a 40-foot container.
In solidarity with the Gaza Strip, the Houthis targeted, with missiles and drones, cargo ships in the Red Sea owned or operated by Israeli companies or transporting goods to or from Israel.
Israeli media reported – today, Sunday – that the giant state-owned Chinese shipping company COSCO has stopped sailing towards Israeli ports.
The Chinese company, which is the fourth largest container shipping line in the world and contributes about 11% of global trade, took this step due to escalating tensions in the Bab al-Mandab Strait and the Red Sea.
On December 18, US Secretary of Defense Lloyd Austin announced the formation of a naval task force called the “Guardian of Prosperity,” which includes 10 countries, with the aim of confronting attacks in the Red Sea.
Maritime trade accounts for 70% of Israel’s imports, and 98% of its foreign trade passes through the Red Sea and the Mediterranean. Trade through the Red Sea contributes 34.6% to Israel’s economy, according to the Israeli Ministry of Finance.
The two largest shipping companies in the world, MSC and Maersk, have suspended their commercial flights through the Red Sea since mid-December, and replaced them with the Cape of Good Hope route, south of South Africa.