New news on the Red Sea Incident
The most recent ship attack occurred on May 10, 2024, when Yemeni Houthi militants launched a missile attack on merchant ships in the Red Sea. This forced some shipowners to abandon sailing through the Suez Canal and the Red Sea and instead choose to circumnavigate Africa. Longer and more expensive route to the Cape of Good Hope. According to reports, 100 oil tankers carrying 56 million barrels of crude oil and fuel have been diverted from the Red Sea since trading ships passing through the Red Sea were targeted by Yemen's Houthi armed forces. This may cause these tankers to take two weeks longer than usual to arrive. It takes many months to reach the destination.
The Red Sea incident has a long-term impact on shipping routes. Shipping companies' detouring around the Cape of Good Hope will lead to an extension of shipping schedules and a substantial increase in freight rates. According to industry analysts, this impact is not limited to the Red Sea route, but may also be transmitted to other container shipping routes and oil/dry bulk freight rates. In fact, since the Red Sea incident, container shipping business cargo volume has increased by 10.5% year-on-year
It is worth noting that after the Red Sea incident, the business volume of China-Europe freight trains has increased to a certain extent. Feiliks said that due to the instability of shipping routes, more and more companies are turning to China-Europe freight trains, a more stable mode of transportation.
In response to the Red Sea incident, governments and navies have stepped up security measures. For example, the EU has launched a Red Sea escort operation called "Shield", which aims to restore and maintain freedom of navigation in the Red Sea and the Gulf. The German Navy's Saxony-class frigate Hessen also encountered a missile attack in the Red Sea, but it did not cause more serious consequences.
The above is the latest news about the Red Sea incident. It can be seen that this incident has had a significant impact on global trade and energy markets.