News Report:
Shipping costs from East Asia to the United States, the United Kingdom, and Israel remain significantly higher than they were a year ago, despite a gradual decline in recent months. This surge is attributed to the ongoing attacks by Sana’a forces on vessels linked to these nations in the Red Sea, the Arabian Sea, the Indian Ocean, and even the Mediterranean Sea, according to international reports.
The latest update from the “Drewry” global container index last Thursday revealed that the cost of shipping a single container from Shanghai to Los Angeles reached $4,806, marking a 110% increase compared to last year. Similarly, the shipping cost from Shanghai to New York climbed to $5,233, reflecting an almost 100% rise during the same period.
Meanwhile, shipping costs from Shanghai to Rotterdam in Northern Europe surged to $3,954 per container, a staggering 211% increase. Shipping costs to Israel also rose significantly, reaching approximately $4,900 per container in October, three times the previous cost of $1,200.
The primary reason behind this surge is the rerouting of vessels associated with the US, the UK, and Israel away from the Red Sea and around the Cape of Good Hope to avoid attacks. This diversion has incurred significant additional costs, with fuel expenses adding up to $1 million per trip and insurance rates climbing to 2% of the ship’s value, according to reports from Reuters.
The attacks by Sana’a forces began targeting Israeli vessels in November last year and later expanded to include British and American ships at the start of this year, in retaliation for airstrikes conducted by the US and the UK on Yemen. Despite efforts to curb these attacks, the measures have proven largely ineffective, keeping shipping costs at exceptionally high levels.