Multiple giants have announced that shipping is suspended! Multiple shipping companies decide, detour! Freight rates have skyrocketed

Recently, Japan's three largest shipping companies stopped all of their ships from traveling through Red Sea waters.

According to the "Nihon Keizai Shimbun" reported that as of 16 local time, ONE - Japan's three largest domestic shipping companies - Japan Post (NYK), Merrill Mitsui (MOL) and Kawasaki Kisen Kaisha ("K" LINE) have decided that all of its ships to stop crossing the Red Sea.

Since the outbreak of the new round of Israeli-Palestinian conflict, Yemen's Houthi forces have used drones and missiles to repeatedly attack targets in the Red Sea waters. This has led to a number of international shipping companies announcing the suspension of Red Sea routes, turning to bypass the southern tip of Africa.

Meanwhile, on the 15th, Qatar Energy, the world's leading exporter of liquefied natural gas (LNG), suspended LNG shipments through Red Sea waters. Shell's transportation through the Red Sea waters has also been suspended indefinitely.

Affected by the tense situation in the Red Sea, as of the 16th, Japan's three major shipping companies have decided to let all specifications of the ship to avoid the Red Sea detour navigation, which led to the transport time than the original increase of 2 weeks to 3 weeks. Not only the delay in the arrival of goods affects the production of enterprises, the cost of shipping has also soared.

According to a survey by the Japan External Trade Organization (JETRO), a number of Japanese food distributors in the United Kingdom have indicated that sea freight costs have risen to three to five times their previous levels and are expected to rise further in the future. The Japan External Trade Organization also said that the situation of longer shipping cycles, if it continues for a long time, will not only lead to shortages of goods, but may also expose containers to a tight supply situation. In order to secure containers for ocean transportation as early as possible, the trend of Japanese companies requesting distributors to place orders in advance has also increased.

The recent situation in the Red Sea continues to be tense, which has brought about a serious impact on maritime transportation. Due to the obstruction of maritime transportation, Suzuki, a major Japanese automaker, said on the 16th that its plant in Hungary was shut down for a week.

Due to the recent frequent attacks on merchant ships in the Red Sea region, resulting in the obstruction of maritime transportation, Suzuki said to the outside world on the 16th, the company's complete car plant in Hungary has been suspended from the 15th for a week.

Suzuki's Hungarian plant, from Japan to import engines and other parts for production. However, due to the Red Sea and Suez Canal routes are blocked, the shipping companies were forced to change to the Cape of Good Hope through the southern tip of Africa to detour transportation, resulting in delayed arrival of parts, thus affecting production. The affected production stoppages were for two SUV models that Suzuki locally produces in Hungary for the European market.

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