The crisis in the Red Sea region is still going on, and now, it has started to mount pressure on Asian exporters, especially those that ship their goods to Europe. Moreover, the probability of attack has caused Asian exporters to take longer routes to their destination, which is causing disruptions in shipping times and freight rates.
Recently, the Yemeni Houthi group attacked several ships as a protest against the Israeli attacks on Gaza. One of the ships attacked was from the US, which caused the US and the UK to retaliate. These events have created a vacuum that has disrupted the whole Sea, especially for the ships involved in the Asia-Europe trade.
BMI Research, a British research firm, said in its January report that the disruption in the shipping routes and time has raised the price of the commodities and increased the shipping costs. In addition, oil is one of the commodities affected the most by this attack. The rising price of crude oil is a big concern for developing and 3rd world countries.
In order to keep the ships safe and to continue the trade, ships are taking a different route that adds 14 days to their journey time. To avoid the strikes from Houthi terrorists, the ships are going through the Cape Of Good Hope in Africa. This adds 14 days to their journey and also forces them to increase transportation costs.
