Shipping Rates Soar 600%! China Officially Steps Up to the Red Sea Incident

On January 12 and 13, local time in Yemen, the United States launched strikes against Houthi targets for two consecutive days. In response, the Houthis said they would retaliate violently.
On January 14, 2024, member of the Political Bureau of the Communist Party of China (CPC) Central Committee and Foreign Minister Wang Yi said at a joint meeting with Egyptian Foreign Minister Shoukry in Cairo after talks with reporters that China is deeply concerned about the recent sharp heating up of the situation in the Red Sea.

Some shipowners revealed that the charterers of tankers traveling to Europe via Suez told them to suspend the stopping of ships before turning to the deviation point between Suez and the Cape of Good Hope, and that other ships had received the same order.
Market analysts believe shipping companies will not return to the Red Sea route anytime soon. Tensions in the Red Sea are likely to not only not stop, but to increase following the US-UK strikes on Houthi targets.
The longer the tensions in the former Red Sea continue, the greater the impact on global maritime transportation and the higher the cost of shipping will become. The Red Sea situation is heating up the chain reaction, pushing up global shipping prices.
According to statistics, by the Red Sea situation, part of the Asia to Europe route on the container prices recently soared nearly 600%. According to a report on Loadstar’s website, the price of space on the China-North Europe route in February reached $10,000 per 40-foot container.

Post time: Jan-16-2024