"Red Sea Tensions Trigger Surge in Shipping and Air Cargo Rates"
Ocean freight rates have surged after a missile attack and attempted hijacking by Yemen-based Houthi militants on a Maersk ship in the Red Sea, leading to a suspension of transits through this crucial route to the Suez Canal. The attacks have caused shipping reroutes around Africa's Cape of Good Hope, significantly increasing transit times and costs, although rates remain below the pandemic peaks of 2021. The Suez Canal is a major trade artery, and the disruptions are affecting global shipping, with Asia-to-Europe and Asia-to-North America rates experiencing substantial hikes.