Red Sea Crisis fuels Container Shipping Costs by 30%

The rerouting of ships from the Red Sea has pushed container shipping rates up by nearly 30% in the past two weeks.

This came as costs for importers rose further as their shipment volumes increased ahead of the summer season.

It is noteworthy that about 15% of global shipping traffic passes through the Red Sea, including approximately 30% of global container trade.

This comes in light of attacks launched by the Houthis in Yemen since November against the backdrop of the war between Israel and Hamas in Gaza. The rebels say that the attacks come in solidarity with the Palestinians in the besieged Strip.

U.S. and British forces have been launching strikes on Houthi sites in Yemen since January 12. The US Army alone carries out strikes from time to time on missiles that it says are prepared for launch.

Following the Western strikes, the Houthis began targeting American and British ships, considering that the interests of the two countries had become "legitimate targets."

The attacks and tension in the Red Sea prompted many major shipping companies to divert their ships to the Cape of Good Hope in the far south of Africa.