Violence against ships in the Red Sea by Iran-backed Houthi rebels has led carriers to divert over $200 billion in trade away from the crucial trade route. This has resulted in longer shipping times of 2 to 4 weeks as vessels must travel around the Cape of Good Hope instead of the Suez Canal. Freight rates have doubled or more from Asia to Europe and North America due to tighter capacity and delays. About 20% of vessel capacity is unused currently due to falling manufacturing orders.
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00:00 It's Benzinga and here's what's on the block.
00:02 Violence against ships in the Red Sea by Iran-backed Houthi rebels has led carriers
00:06 to divert over $200 billion in trade away from the crucial trade route. This has resulted in
00:11 longer shipping times of 2-4 weeks as vessels must travel around the Cape of Good Hope instead
00:16 of the Suez Canal. Freight rates have doubled or more from Asia to Europe and North America due
00:20 to tighter capacity delays. About 20% of vessel capacity is unused, currently due to falling
00:26 manufacturing orders. Higher shipping costs will likely be passed on to consumers, adding
00:30 to inflation pressures. For all things money, visit Benzinga.com.