
Shipping companies are facing the full impact of the escalating Red Sea crisis
Following coalition forces’ bombing of targets in Yemen to neutralize the threat to shipping in the Red Sea, the crisis has worsened, raising the risk to merchant shipping. Xeneta reports the cost to transport goods across the Cape of Good Hope is $1,000 per box. According to chief analyst Peter Sand, shipping companies may not return to the Red Sea for six months, likely leading to increased network loops and higher costs.