Shipping insurance rates soar on Red Sea missile attacks

The Houthi strikes have also prompted some shipping companies to detour around southern Africa to avoid the Red Sea.

Daily container vessel traffic within the Red Sea has declined by over 80% for large container ships.

According to a report by LSEG Shipping Research, the incremental costs of diverting a tanker from Asia to NW Europe via the Cape of Good Hope is accounting for an extra $932,905 USD per voyage while increasing transit time from 16 days to 32 days.

Increased shipping costs are a main cause of global inflation. In addition to the Red Sea piracy problem, the Panama Canal is facing lower water levels following a severe drought, halving its capacity. Many ships are taking the Horn or the Cape, increasing time and cost.

Please note that this is in spite of what Biden and Sunak called "decisive blows" against the Houthis. Most western media reported such comments without analysis or criticism.

Western leaders tell constant lies. Life in democratic countries is better than in repressive regimes like China, but that does not mean we are not being lied to and treated like idiots.

I am sure it can't be helped but that issue can probably, willing or not, only be finally solved civilized by negotiations and paying some money for the ship passages, like it is also practiced at Panama and Suez canals. Military attempts are too expensive, cost much effort and lives and the longer ship routes and higher insurances remain in effect, so nothing becomes better during an endless war on the sea routes there.

Transit thru the Suez down 72%, since first Houthis missile and drone launches in Dec. So big impact on supply chains, cost of transport and yes INFLATION!

Transit thru the Suez down 72%, since first Houthis missile and drone launches in Dec. So big impact on supply chains, cost of transport and yes INFLATION!

All Trump's fault.

UNCTAD estimates that the weekly transits going through the Suez Canal decreased by 42% over the last two months.

72% DROP in Suez Canal refers to CNBC source, figure relates to decrease in $economic value, NOT # of ships transiting Suez. High value cargo now avoiding Suez.

Seem Houthis and their supporters are winning BIG Time in Red Sea, as are railways moving goods into and out Asia and Europe, Russian rail big $beneficiary for sure.

No easy answer to shoot and scoot, whack a mole, as economic and inflation damage builds globally.

It's also adding lots of pressure to shortages of air defense missiles in Ukraine and Israel. Navy ships can spend $tens of millions to ward off one attack and use up these precious missiles that are not well stockpiled.

China's watching above missile market dynamic closely!