Ocean freight rates are surging after a missile attack and attempted hijacking of a Maersk ship this weekend prompted carriers to suspend plans to restart transits through the Red Sea, a key artery to the vital Suez Canal trade route, Reuters reports.
Egypt’s Suez Canal connects the Red Sea to the Mediterranean Sea and is the fastest way to ship fuel, food and consumer goods from Asia and the Middle East to Europe.
The attacks are already delaying delivery of products destined for numerous companies, as the Suez route is used by the likes of IKEA, Walmart and Amazon.
As of Wednesday, hundreds of container ships and other vessels have been rerouted around Africa’s southern Cape of Good Hope to avoid the attacks — adding anywhere from 7 to 20 days to their voyages.
Those so-called, one-time “spot” rates are roughly double the rates for freight that moves on the contract market, logistics executives said. Rates to less-affected North American ports also are moving higher.
