2024-01-17 05:32:01
Margaux Fodéré / Photo credit: Christophe SIMON / AFP
For several weeks, Houthi rebels have been attacking commercial ships in the Red Sea, forcing them to divert their route. The negative effects on European factories are starting to be felt. But, in a way, the situation is boosting business for shipping carriers.
The Suez Canal is one of the busiest shipping lanes in the world. Around fifty ships use it every day, particularly for the transport of oil or finished products such as clothing or furniture. But in recent weeks, Houthi rebels have been attacking commercial ships in the Red Sea, forcing them to change their route. While some ships continue to pass through the northern Red Sea, the vast majority of container ships divert their route to the Cape of Good Hope, in the south of Africa.
Enough to cause an explosion in maritime freight rates. This Monday, the French CMA-CGM, the third largest shipowner in the world, doubled its costs for trade between Asia and the Mediterranean. While the risk to crew safety is high, the situation is boosting business for shipping carriers.
“Beyond $3,500, we would no longer be on something reasonable”
“The current situation, the shipping companies did not want it. On the other hand, they are forcing adaptation. There is a touch of opportunism on the part of the shipping companies who embraced 2024 in a rather negative way”, explains Jérôme de Ricqlès, maritime expert at Upply. Concretely, for a standard 40-foot container, which transits from Shanghai to Le Havre, prices have increased from $1,800 in December to $3,500 today on average.
Amounts that could even climb further. “Beyond $3,500, we would no longer be on something reasonable. It could be an incentive for distributor customers to increase their retail prices,” adds Jérôme de Ricqlès. Rising sales prices could thus risk reviving inflation, as it continues its slow slowdown in France and Europe.
1705488457
#touch #opportunism #tensions #Red #Sea #shipowners #increasing #bill