Ocean cargo rates climb after new Red Sea ship attacks – Middle East Monitor

Asia-to-North Europe rates more than doubled to above $4,000 per 40-foot container this week, with Asia-to-Mediterranean prices climbing to $5,175, according to Freightos, a booking and payments platform for international freight.

Some carriers have announced rates above $6,000 per 40-foot container for Mediterranean shipments starting mid-month, and surcharges of $500 to as much as $2,700 per container could make all-in prices even higher, Judah Levine, Freightos’ head of research, said in an email.

Rates for shipments from Asia to North America’s East Coast climbed 55 per cent to $3,900 per 40-foot container. West Coast prices jumped 63 per cent to more than $2,700 ahead of expected cargo diversions to avoid Red Sea-related issues, Levine said.

While rates have spiked, they remain far below 2021’s pandemic-fuelled record highs of $14,000 per 40-foot container for Asia to North Europe and the Mediterranean and $22,000 for Asia to North America’s East Coast.

FACTBOX – Shipping firms react to Houthi attacks in the Red Sea – Middle East Monitor

The Houthis in Yemen have stepped up attacks on vessels in the Red Sea to show their support for Palestinian group, Hamas, fighting Israel in Gaza, Reuters reports.

The attacks impact a route vital to East-West trade, especially of oil, as ships access the Suez Canal via the Red Sea.

In response, some shipping companies have instructed vessels to, instead, sail around southern Africa, a slower and, therefore, more expensive route.

Below are actions take by companies (in alphabetical order):

H. Robinson

The global logistics group said on 22 December it had rerouted more than 25 vessels around the Cape of Good Hope over the past week, and that number would likely grow.

“Blank sailings and rate increases are expected to continue across many trades into Q1 of 2024,” it added.

CMA CGM

The French shipping group is planning a gradual increase in the number of vessels transiting the Suez Canal, it said on 26 December. “This decision is based on an in-depth evaluation of the security landscape and our commitment to the security and safety of our seafarers,” CMA CGM said in a statement.

The company had previously rerouted several vessels via the Cape of Good Hope.

Euronav

The Belgian oil tanker firm said, on 18 December, it would avoid the Red Sea until further notice.

Evergreen

The Taiwanese container shipping line said, on 18 December, its vessels on regional services to Red Sea ports would sail to safe waters nearby and wait for further notification, while ships scheduled to pass through the Red Sea would be rerouted around the Cape of Good Hope. It also temporarily stopped accepting Israeli cargo.

Frontline

The Norway-based oil tanker group said, on 18 December, that its vessels would avoid the Red Sea and the Gulf of Aden.

Gram Car Carriers

The Norwegian company, which specialises in transporting vehicles, said on 21 December its vessels were restricted from passing through the Red Sea.

Hapag-Lloyd

The German container shipping line said, on 2 January, it had decided to continue to avoid the Red Sea, instead diverting vessels to the Cape of Good Hope, until at least 9 January when it would again assess the situation.

A projectile believed to be a drone struck one of its vessels sailing close to the coast of Yemen on 15 December. No crew were injured.

HMM 011200.KS

The South Korean container shipper said, on 19 December, it had ordered its ships, which would normally use the Suez Canal, to reroute via the Cape of Good Hope.

Hoegh Autoliners

The Norwegian shipping company said on 20 December it would stop sailing via the Red Sea after the Norwegian Maritime Authority raised its alert for the southern part of the sea to the highest level.

Klaveness Combination Carriers

The Norway-based fleet operator said, on 28 December, it was unlikely to sail any of its vessels in the Red Sea, unless the situation improves.

Maersk

The Danish shipping group said on 31 December it was pausing all sailing through the Red Sea for 48 hours after Houthi militants attacked the Maersk Hangzhou container vessel.

A 1 January advisory showed Maersk was to send more than 30 vessels through the Suez Canal in the coming days, while 17 other voyages were put on hold.

The company was expected to update its plans on 2 January.

MSC

Mediterranean Shipping Company (MSC) said on 16 December its ships would not transit through the Suez Canal, with some already rerouted via the Cape of Good Hope, a day after two ballistic missiles were fired at one of its vessels.

Ocean Network Express

Ocean Network Express (ONE), a joint venture between Japan’s Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines and Nippon Yusen,  said on 19 December it would re-route vessels away from the Red Sea to the Cape of Good Hope or temporarily pause journeys and move to safe areas.

OOCL

The Hong Kong-headquartered container group said on 21 December it had instructed its vessels to either divert their route away from the Red Sea or suspend sailing. The company, owned by Orient Overseas (International) Ltd, has also stopped accepting cargo to and from Israel until further notice.

Wallenius Wilhelmsen

The Norwegian shipping group said on 19 December it would halt Red Sea transits until further notice. Rerouting vessels via the Cape of Good Hope will add 1-2 weeks to voyage durations, it said.

Yang Ming Marine Transport

The Taiwanese container shipping company said on 18 December it would divert ships sailing through the Red Sea and the Gulf of Aden via the Cape of Good Hope for the next two weeks.

Owned.