Date: 13/02/2024

Red Sea shipping traffic continues to decline

Red Sea shipping traffic continues to decline, with the composite index per 40-foot container capping at $3,786, down 4.5% after an 8-week rise, according to the UK-based Drewry’s World Container Index. Freight rates have experienced a slight decrease in the past two weeks after a significant spike amid heightened tensions in the Red Sea. However, rates remain elevated compared to last year’s levels. Despite this decrease, it is still 90% higher year-on-year and 174% above the pre-pandemic levels. Shipping companies have begun adapting to the longer route around the Cape of Good Hope, adjusting their planning and budgeting accordingly. While tensions in the Red Sea persist, the initial rush has started to normalise, and experts believe the crisis will continue until a resolution is found, as per a report.
Source: Exim News Service: Jeddah, Feb. 12