Red Sea crisis and Panama Canal drought, freight rates on related routes soared!
Red Sea crisis and Panama Canal drought, freight rates on related routes soared!
As the situation in the Red Sea becomes increasingly tense, shipping risks in the region have also frequently escalated. Many shipping companies have had to bypass the Red Sea and choose a route via the Cape of Good Hope, the southernmost tip of Africa. According to estimates, the voyage from Europe to Asia via the Cape of Good Hope is about 40% longer, which will lead to a significant increase in shipping time and cost.
Industry insiders predict:
Sailing times to the Mediterranean and Black Sea will be extended by 15-20 days
Arrival time in Europe will be extended by 15 days
Meanwhile, ships that still choose to transit the Red Sea will need to purchase more expensive insurance. It is estimated that the relevant war risk rate has increased from 0.07% to 0.1% to 0.2%
In addition, another important shipping route, the Panama Canal, has also seen a sharp decline in navigation volume due to drought recently.
Some analysts pointed out that the shipping companies currently suspending transportation in the Red Sea are at the forefront of global shipping capacity, which will inevitably affect the global maritime transportation market.
In addition, the Red Sea is also an important channel for the export of oil and natural gas from the Middle East. If transportation is blocked, it may have an impact on global energy supply.
According to the Financial Associated Press, the person in charge of a freight forwarding company revealed that some shipping companies have announced the latest freight rates, among which the freight rates for routes from the Far East to Israel have risen to more than 6,000 US dollars/FEU. “In the first half of December, shipping costs were only over 1,000 US dollars/FEU, and in the second half of the month (starting) they were only over 2,000 US dollars/FEU.
According to the latest data released by the Shanghai Shipping Exchange on December 15, the SCFI index continued to rise by 61.31 points last week to 1093.52 points, and the weekly increase expanded to 5.93%. The four major ocean routes increased across the board, and the European line freight rate returned to more than 1,000 US dollars.
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