Shipping company CMA drastically raises container prices
The attacks by the Houthi rebels on ships in the Red Sea are not only disrupting maritime traffic. They are now also driving up prices for container transport. The French shipping company CMA estimates a hefty surcharge of 100 percent.
In view of the attacks by Houthi rebels on ships in the Red Sea, the French shipping company CMA CGM is raising its freight rates for container transportation from Asia to the Mediterranean by 100 percent. From January 15, the transport of a 40-foot container between Asia and the Western Mediterranean will cost 6,000 dollars, compared to 3,000 dollars previously, the group announced. Prices to the Eastern Mediterranean, the Adriatic, the Black Sea and Syria have also been drastically increased. However, a spokesperson did not want to give any details.
Some shipping companies have been avoiding the Suez Canal with some of their ships since the attacks on freighters in the Red Sea. They are diverting the ships via the Cape of Good Hope at the tip of South Africa. The route is significantly further than the Suez Canal, which also leads to higher fuel and personnel costs. In turn, insurance costs have increased for the journey through the Red Sea.
Following an attack on one of its freighters at the weekend, the major Danish shipping company Maersk announced that it was suspending shipments through the Red Sea until further notice. Where it makes sense for customers, ships will be diverted around the Cape of Good Hope. Maersk is thus following in the footsteps of its German competitor Hapag-Lloyd, which is also continuing to route its shipments around the African continent.
Germany's largest container shipping company had previously declared that it would continue to avoid the sea area in the Middle East due to the uncertain situation in the Red Sea. "We are monitoring the situation very closely on a daily basis, but will reroute our ships until January 9".
The shares of the companies concerned have risen since the attacks in the expectation that longer routes will lead to higher freight rates. On Tuesday alone, Hapag-Lloyd shares rose by a further five percent to 143 euros. Within three weeks, the share price has thus risen by around 40 percent. The attacks in the Red Sea have been taking place for several weeks now, after the Iranian-backed Huthi rebels in Yemen declared their solidarity with the radical Islamic Hamas.
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Due to the ongoing attacks by Houthi rebels on container ships in the Red Sea, several shipping companies have opted to bypass the Suez Canal and instead take the longer route via the Cape of Good Hope. This huthi-instigated disruption on the Red Sea is not only causing a rerouting of container ships but also significantly driving up prices for container transport, with the French shipping company CMA CGM imposing a 100 percent surcharge.
Source: www.ntv.de
