Shares of shipping companies have become the fastest growing in Europe since the beginning of 2024. In the last week, their growth was the most significant in recent years, as the change in the route of ships after the attacks in the Red Sea increased freight rates.
Due to the risks associated with passing through The Red Sea and major shipping companies are now avoiding this route, which usually includes passage through the Suez Canal. As a result, these companies are now using longer routes, especially around the Cape of Good Hope, to avoid the troubled region. Such changes increase the delivery time to Europe by 10–14 days.
Vessel traffic through the Suez Canal decreased by 30% between January 1 and January 11 compared to 2023.
What is the threat?
— Shippers may face delays at covid 2020 levels; — prices for most goods will rise, for example, for spring clothes, shoes, household goods, electronics, garden furniture and inventory, etc. — delays in deliveries are expected due to longer routes, as well as due to the proximity of the Chinese New Year, which will be celebrated from February 10 to 24.