The cost of transporting containers from China to Europe via different routes has increased from one thousand dollars to 4 thousand dollars due to the attacks carried out by the Houthis in Yemen in the Red Sea.
Rurade, Maritime Advisor of Evofenedex, a Netherlands-based trade and logistics organization, stated that the cost of transporting containers from China to Europe by different routes has increased from one thousand dollars to 4 thousand dollars due to the attacks carried out by the Houthis in Yemen in the Red Sea.
From one thousand dollars to four thousand dollars
Kasper Rurade, Shipping Consultant at Evofenedex, said: “In mid-December, before the crisis started and many ships started using routes outside the Red Sea, shipping prices were quite low. The cost of transporting a container from Shanghai to Rotterdam was a thousand dollars. After the crisis started, prices increased dramatically. Now it costs 4 thousand dollars to transport a container.”
Big crisis in the Red Sea
Noting that the additional expenses and insurance prices of container ships have also increased, Rurade said, “Before the crisis, insurance accounted for 0.8 percent of the ship price. Now it is around 1 percent. In other words, if the price of the ship is evaluated as 100 million dollars, 1 percent of this amount, that is, the insurance cost, is 1 million dollars. This is much higher than what used to be paid,” he said.
Not that the price increase in the insurance against the sinking of the cargo carried by the ships at sea is another problem.
The opinions expressed herein are the author’s and not necessarily those of News2Sea.