2023-12-23 17:21:48
Riyadh: The number of shipping companies that have withdrawn from the journey through the Red Sea coast has increased to twelve. The rate of container services is also reaching the same rate as during the Covid period. With this, it will be strongly reflected in the economic field in Israel, Egypt and Europe
Oil exports to different parts of the world were along the coast of the Red Sea. The retreat came following the Houthis attacked ships bound for Israel. Twelve shipping lines have already been rerouted. Currently traveling through Africa. This resulted in an increase of $800 in container charges. Apart from this there is war risk charge and huge insurance.
The situation will become serious with the combination of rate hike and delay. This has seriously affected Israel. Eliot Port has reached a state of emergency. The CEO himself says that port activity has dropped by 87%.
The Suez Canal is Egypt’s main source of income. If it stops, financial crisis is sure for them. The situation is that shipping companies are reluctant to go through Suez by paying huge insurance and war risk charges.
With the new situation, commodity prices will rise, which will directly affect Europe and America first. Economists warn that this will be reflected in the global market. The Houthi’s position is that they will not end the attack on the ships there without ending the occupation of Israel.
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