Red Sea Shipping Costs Surge Amid Houthi Attacks
The cost of transporting fuels from the Middle East to Asia has surged by 182% due to disrupted traffic flow through the Red Sea, with rates for transporting naphtha tripling to about $83,000 per day. Carrier companies are avoiding the Red Sea, opting for longer and more expensive routes, leading to delays and increased shipping costs. Tensions in the region have intensified as the Houthis escalated attacks on commercial shipping, resulting in heightened security concerns and rising transportation expenses.