Yemeni Houthi terrorist attacks on ships in the Red Sea have resulted in increased transportation costs on certain China-to-Europe routes by approximately 400%, according to European Economy Commissioner Paolo Gentiloni. The commissioner also stated that the duration of shipping on these routes has increased by up to 15 days.
European Union official voiced optimism regarding the potential impact of the trade route crises not having a significant impact on inflation in the EU, while acknowledging that additional disruptions in supply could result in price spikes.
Since the start of the Israeli anti-terrorist operation against Hamas terrorists in Gaza, who attacked Israel in October, Yemen-based Houthi militants have conducted numerous missile and drone strikes on commercial ships traversing the Red Sea. Consequently, numerous prominent shipping companies have ceased utilizing the Suez Canal and are opting to redirect their vessels around the Cape of Good Hope in southern Africa.
Average container prices have allegedly doubled worldwide in the last month due to the reported terror attacks, whereas fuel tanker rates for specific destinations have risen to their highest point in years.
In the previous month, an initial accord was reached by the European Union foreign ministers to commence a naval operation in the Red Sea for safeguarding commercial vessels. This proposal was put forward by Germany, France, and Italy, in direct response to appeals made by the Netherlands, whose maritime transportation sector has faced significant repercussions due to the ongoing assaults.
The bloc’s top diplomat, Josep Borrell, has said that the mission is expected to be launched on February 19.
European Unon’s Chief Diplomat, Josep Borrell, has stated that the operation will commence February 19.
