The Atlas Group

Red Sea shipping traffic continues to reduce

Shipping in the Red Sea is slowing down, and the cost of transporting goods in a standard 40-foot container has dropped to $3,786, a 4.5% decrease after eight weeks of growth, according to the Drewry’s World Container Index. Freight rates dipped in the last two weeks after a notable increase during heightened tensions in the Red Sea. Although rates have fallen, they are still much higher compared to last year, remaining 90% above the previous year and 174% higher than before the pandemic. To cope with the situation, shipping companies are opting for longer routes around the Cape of Good Hope, adjusting their plans and budgets accordingly. While tensions are easing, experts predict that the shipping crisis will persist until a resolution is reached.