Middle East crisis causes shipping container costs to double
January 12, 2024 The ongoing Red Sea blockade has sent shockwaves through the global trade landscape. Shipping containers from China to Europe have seen a staggering 100% increase in costs, and the repercussions are reverberating across industries worldwide. The blockade has resulted in a doubling of shipping container prices from China to Europe, impacting the logistics and supply chains of countless businesses. Preliminary reports indicate a 1.3% decline in global trade, signifying the far-reaching consequences of the disruption on the interconnected world economy. Calculations by the UK Treasury highlight potential ramifications for the energy sector. If the blockade persists, it could add $10 per barrel to the price of oil and contribute to a 25% increase in the price of LNG.
