Red Sea: The rising freight rate will continue until the end of January!

Red Sea: The rising freight rate will continue until the end of January!

Recently, a customer announcement issued by Kuehne + Nagel Group, the world's largest ocean freight forwarder, shows that the recent escalation of the situation in the Red Sea/Suez Canal is expected to continue to have a significant impact on global shipping.agent shipping china

As shipping companies implement their response plans and strategies, potential impacts include: delays in delivery, additional costs caused by detours that push up freight rates, increases in fuel consumption and related costs, reductions in available shipping capacity triggering freight rate increases, and route adjustments This aggravates the operational disruption of ports and terminals, and extends the voyage time and disrupts the allocation of empty containers, resulting in shortage of containers at the port of departure, disruption of shipping schedules, and forced diversion of ships.agent shipping china

The announcement also pointed out that unless escort solutions are adopted, shipping companies may eventually be forced to reroute all ships on affected routes around the Cape of Good Hope in Africa, which will consume at least 2.5 million TEUs of shipping capacity, or approximately 9% of the global container fleet. capacity, resulting in a global shortage of available capacity.agent shipping china

Affected by the turmoil in the Red Sea, available shipping capacity will be further reduced in the short term, and short-term freight rates will continue to rise in the next few weeks, and this momentum is expected to continue until the end of January.agent shipping china

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