Red Sea attacks send China-Europe container shipping rates soaring, push firms to skip Suez Canal

Inquiries about the China-Europe Railway Express have increased significantly since Houthi militants began targeting vessels navigating the Red Sea

Ships face an extra 10 days at sea if they divert via the Cape of Good Hope at the southern tip of Africa instead of the more direct route through Egypt’s Suez Canal

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Major freight firms have suspended transits through Egypt’s Suez Canal, according to media reports. Photo: Shutterstock Images

Published: 9:00pm, 19 Dec 2023Updated: 2:26pm, 20 Dec 2023

As global shipping giants are forced to divert container ships via the Cape of Good Hope at the southern tip of Africa in the wake of attacks by the Houthi militants in the Red Sea, shipping prices between China and Europe have shot up amid concerns over supply chain disruptions.

“The price of the Mediterranean route is soaring now,” said Xia Xiaoqiang, a Tianjin-based freight forwarder.

“The freight rate of early January may double that of early December.”

The Iran-aligned Yemeni anti-government group has stepped up their involvement in the Israel-Gaza war, and has increasingly targeted vessels navigating the Red Sea in recent months, warning of attacks on all Israel-bound ships.

Major freight firms, including Europe’s CMA CGM, Maersk and Mediterranean Shipping, as well as Chinese state-owned giant Cosco and Taiwan’s Evergreen Marine, have suspended transits through Egypt’s Suez Canal, according to media reports.