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In recent times, the world has been confronting the issues of ceaseless attacks on the Red Sea which are further leading to spiked up ocean freight rates, warnings of inflation and delayed goods. In order to prevent such strikes, carriers have already diverted over $200 billion in trade in the past weeks away from the crucial Middle East trade route, which, along with the Suez Canal, connects the Mediterranean Sea to the Indian Ocean. This worsening situation has led to a multiple front storm for global trade, not likely to cease anytime soon.
On the other hand, Panama, a waterway that witnesses and manages $270 billion a year in global trade, is drying out at a rapid pace. The parched conditions are visible and a source of concern for the authorities. They have capped the number of vessels that cross. This imposed limit is a massive issue for the shippers as they have to face limitless struggle to cross or opt for the costlier routes around Africa or South America.
The ongoing tough times for shippers due to the whole Red Sea chaos has also pushed French shipping group CMA CGM to escalate its container shipping rates from Asia to the Mediterranean region by up to 100% as of Jan. 15 compared to Jan. 1. Not only this, the prices for freight to the East Mediterranean, the Adriatic, the Black Sea and Syria also witnessed a sharp rise.
The European importers are also complaining of significant delays and confusion on the arrival of their containers from Asia, coupled with a huge spike in freight costs. The new year has not seen a good start but we may hope for better times ahead with some alliances.
Further updates Red Sea/Panama Canal/Suez Canal/Shipping Costs/Capacity Issues
Red Sea crisis adds pressure to shipping costs, delays – and inflation worries
Saving the Panama Canal Will Take Considerable Time
CMA CGM Increases Shipping Rates Between Asia and Mediterranean
Supply chain confusion and increasing rates ring in the new year for shippers
