All Categories


The impact of the Red Sea crisis on international trade and transportation

According to Global Times, on the official website of German shipping giant Herbert on December 22nd, the status of ships frequently appearing on the live-time information page of the Red Sea - Suez Canal area shows that they are circling the Cape of Good Hope. Due to concerns about armed attacks by Yemeni Husai on ships, the Mand Strait, the "throat" of international shipping routing, has become a dangerous sea area that major shipping companies around the world have been trying to avoid since late December.

The continuous upgrading of the international maritime situation in the Red Sea has led to an increase in current international trade transportation costs. Due to the unstable situation in the Red Sea region, ship transportation is hindered, and shipping companies need to face higher safety costs and risks. The shipping schedule has also been greatly extended. Many cargo ships that have already been sent out are unable to pass through the Red Sea and can only be forced to remain stranded on the open sea. If we arrange the shipping schedule again now, we will have to detour to the Cape of Good Hope in Africa. This route will increase the shipping schedule by about 15 days compared to the original Suez Canal route. According to a report released by CITIC Futures on December 22nd, the current proportion of westward ships in the Indian Ocean region deviating through ship trajectory tracking has reached 75.9%. The current normal round-trip sailing time for the Asia Europe route is about 77 days, and the sailing time after detouring will increase by about 3 weeks. At the same time, considering the decrease in ship turnover efficiency, the actual round-trip time may reach more than 95 days.