London, UK: Two of the world’s largest container ship operators have extended diversions from the Red Sea following an attack on a vessel last weekend that has been blamed for renewed oil price volatility and rising container shipping prices.
On Sunday, Maersk suspended sailings near or via the Suez Canal after one of its giant carriers, the Maersk Hangzou, was targeted by Houthi militants – the latest in a string of attacks on shipping vessels since November.
Hapag-Lloyd said it would continue to avoid the Red Sea route until at least 9 January. MSC and Maersk have paused journeys through the Red Sea until further notice and CMA-CGM is increasing its rates between Asia and the Mediterranean.
Container shipping rates have continued to rise despite some restoration of Red Sea route in December. The Shanghai Containerised Freight Index (showing average prices) increased to $2,694 (£2,113) for 20ft containers, up from $1,497 (£1,177) on 22 December.
Not since 30 September 2022 has the price been this high. The cost of shipping goods has increased as major companies pause activity in the Red Sea and re-route ships round the Cape of Good Hope. Price rises came despite the second largest container shipping firm, Maersk, recommencing some Red Sea journeys in December following guarantees by several governments of additional protection for ships in the Red Sea threatened by Houthi militants in Yemen.
