DHAKA : There’s been a more than 30 per cent increase in freight charges and an additional 15 days in sailing time due to ships rerouting away from the Red Sea.
Media reports maintained this while adding that international clothing retailers and brands, nevertheless, continue to prefer seaways over air transport for shipping goods from Bangladesh to Europe even as the ongoing conflict in the Red Sea, a crucial shipping route, has led reinsurers worldwide to charge 3.5 times higher premiums to cover associated risks.
The Red Sea, serving as a vital link between Asia, Europe, and the Mediterranean via the Suez Canal, witnesses approximately 12 per cent of global trade and 30 per cent of global container traffic.
Escalating tensions arose when Houthi rebels targeted Israel-linked ships in response to the conflict in the Gaza Strip in October. The situation intensified with counter-attacks by the UK and the US.
To avoid the Red Sea, ships are compelled to take a lengthy detour around the Cape of Good Hope, adding around 4,000 miles or 6,500 kilometers and 10-12 days of sailing time to each trip.
This redirection results in extra fuel costs, potential changes to port calls, adjustments to delivery schedules, and an overall rise in expenses.