global-shipping-crisis7.125 min read "Global Shipping Under Threat: Red Sea Crisis and Houthi Attacks"
The Red Sea shipping crisis, caused by Houthi attacks, is expected to persist for months, leading to delays in oil and retail cargo, potential inflation, and supply chain disruptions. Energy companies like Shell are rerouting tankers, causing a 5-10% price impact, while container ship traffic bound for the Suez Canal has been rerouted, potentially leading to a 40-50% drop in vessel crossings. This is affecting global shipping costs and could lead to a container crunch, impacting retailers and causing delays in product deliveries. U.S. East Coast and Gulf freight rates are soaring, and some logistics companies are rerouting to the U.S. West Coast, potentially resulting in higher rates.
2 years ago•Source: CNBC
