Capsule · The news app for modern leaders

Trends and Insights

Download
10 Jan 2024

+170%

Houthi Attacks Spike Shipping Costs, Disrupt Global Trade

The Houthi assaults on shipping routes through the Red Sea have prompted a rerouting via South Africa, significantly lengthening transit times [and increasing shipping fees](https://english.elpais.com/international/2024-01-05/red-sea-crisis-from-houthi-attacks-hits-world-trade-as-cost-of-shipping-soars-by-170.html?utm_medium=Social&utm_campaign=echobox&utm_source=Twitter&ssm=TW_CM_EN#Echobox=1704477706). Freight rates for a standard 40-foot container have almost tripled since mid-December to $4,000, exacerbating inflationary pressures on the global economy already dealing with the aftermath of the COVID-19 pandemic.