Goods to Europe have been significantly affected

Published:

2023-12-29

　　Because of the armed conflict in the Red sea, Ships to Europe may re-route around South Africa’s Cape of Good Hope instead of passing through the Suez Canal, which causes a longer transportation time (over 20 days longer), higher sea freight fee (20%~100% higher ).

　　The Red Sea is located at the junction of the two continents of Asia and Africa. Its southern end is connected to the Arabian Sea and the Indian Ocean through the Bab el-Mandeb Strait, and its northern end is connected to the Mediterranean Sea and the Atlantic Ocean through the Suez Canal.

　　In less than a month, approximately 16 ships of various types were attacked or even seized. International shipping continues to be disrupted, many shipping companies recently announces the suspension of sailings in the Red Sea.

　　Around 12% of global cargo transport passes through the Red Sea and Suez Canal.

　　The International Chamber of Shipping warned that cargo ships avoiding the Suez Canal and detouring around the Cape of Good Hope at the southwest tip of Africa will mean increased navigation costs, longer shipping days, and corresponding delays in delivery times.