Red Sea attacks – freight rates soar

Attacks by Yemen’s Houthi militia on merchant ships in the Red Sea have forced hundreds of vessels to reroute around the southern tip of Africa, adding 10-14 days of extra travel

SUDAN
Suez Canal
Cape of Good Hope

SAUDI ARABIA
Houthi-control 
OMAN 
Red Sea
Sanaa
YEMEN
Gulf of Aden 
ETHIOPIA 
400km 250 miles

Bab al-Mandeb Strait: 18,250 container ships a year, carrying US$1 trillion worth of goods, pass
through Red Sea to Suez Canal before Houthi attacks

Freight rates from Asia ($ per 40ft container)

Shanghai to Genoa
Shanghai to Rotterdam
Shanghai to New York 
Shanghai to Los Angeles 

6,000
5,000
4,000
3,000
2,038
1,000  
0

Sep  Oct  Nov  Dec  Jan  Jan 18

1,615 1,024 4,951
2,038 1,370 6,282
2,217 1,979 3,860
3,438 2,629 5,644

Oct 7, 2023: Hamas launches surprise attack on Israel 

Oct 19: Houthis initiate their first attacks related to Israel-Hamas war, targeting southern Israel and ships in Red Sea

Dec 18: Houthi Red Sea attacks intensity

Jan 12, 2024: U.S. and British military attack Houthi targets 

Sources: Bloomberg, Drewry World Container Index © GRAPHIC NEWS