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Up to a quarter of the world's goods ship through the Bab al Mandeb, including critical energy supplies for Europe from the Persian Gulf. Photograph by Gallo Images, Orbital Horizon/Copernicus.
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1:25. European natural gas prices rebounded after a two-day slide as more attacks on vessels in the Red Sea raised the risk of prolonged disruptions to a key shipping route. Benchmark futures.
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Key Points. The Red Sea crisis is having a global ripple effect on freight rates with shipping costs between Asia and the U.S. now spiking as well. JPMorgan told clients the fight against.
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The spot rate for shipping goods in a 40-foot container from Asia to northern Europe now tops $4,000, a 173% jump from just before the diversions started in mid-December, Freightos.com, a cargo.
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This is good news for shipping stocks. Maersk shares are up over 17% this week alone, their biggest weekly jump since April 2009, making them the biggest gainer in Europe's STOXX 600 benchmark.
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The alternative route for ships traveling from Asia to Europe around the Cape of Good Hope adds about 3,500 nautical miles (6,482 kilometers) for a ship traveling to Europe from Singapore.
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MSC, the largest ocean carrier in the world, was the first shipping company to release rates for the second half of January. Starting Monday, container rates for MSC clients will be $5,000 for U.S.
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1:26. Shipping disruption in the Red Sea could lead to inflation on some consumer goods, Tesco Plc 's chief executive officer said Thursday. "If they do have to go the whole way around Africa.
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Next has warned supplies of its products could be delayed if disruption to shipping in the Red Sea continues. Attacks by Houthi rebels on vessels in one of the world's busiest shipping lanes have.
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Major container ship operators like Maersk and Hapag-Lloyd are re-routing vessels away from the Suez Canal - the shortest route from Asia to Europe - after militant attacks on vessels in the Red Sea.