All articles tagged with #businessshipping
Originally Published 1 year ago — by gCaptain
CMA CGM has suspended all vessel crossings through the Bab al-Mandab Strait in and out of the Red Sea due to security risks posed by Houthi militants in Yemen, following recent attacks on its ships. This decision disrupts the main trade route between Asia and Europe, prompting the redirection of some services around southern Africa.
Originally Published 2 years ago — by CNBC
Attacks by Yemen-based Houthis in the Red Sea have led to a spike in freight rates as shipping companies divert routes, potentially ending the global shipping recession. The disruptions could add billions to the bottom line of vessel-operating common carriers (VOCCs) like Maersk, Evergreen, and COSCO. While the higher rates may boost profitability, the industry still faces challenges such as oversupply of containers and soft shipping demand. The duration of the disruptions and involvement of multinational navies will determine the extent of the impact on freight rates.