According to economic experts, the incident of container ships being attacked by Houthi forces in Yemen in the Red Sea area is likely to reduce global transportation energy by 20%.
According to the company, compared with routes through the Suez Canal, a trip between Asia and Europe around the Cape of Good Hope would add three to four weeks to transit time. Routes to the US East Coast are expected to be delayed by about 5 more days.
Kuehne + Nagel estimates that extended travel times will reduce the capacity of the global container fleet by 20%, leading to potential delays in available shipping resources. The knock-on impact is even greater with around 40% of container ships experiencing delays.
Expert Chris Rogers at S&P Global said: “Transportation costs on the route connecting the Asia-Europe axis will likely increase by about 15%, when calculating fuel costs excluding Suez Canal fees, and there will also be additional insurance costs increase.
Mr. Rogers estimates higher shipping costs and delivery delays will affect about 47% of the price of toys, about 40% of home appliance prices and about 40% of shipped apparel. between Asian and Western economies.
Besides, the supply of industrial goods is also likely to be delayed. Rerouting the trains would affect the transport of 24% of chemicals, as well as 22% of flat-rolled steel used in the auto industry and 22% of insulated wire and batteries for cars.
According to Nikkei, there are signs that the delay has affected retail prices in the US. Mr. Jon Gold, Vice President of supply chain and customs policy of the National Retail Federation (USA), on December 21, shared that shipping disruptions are causing retailers’ shipping times. increase by two weeks or more. They lead to increased freight rates and ultimately increased commodity prices.
Source: bnews.vn