Headlines
Houthis attacks on Red Sea: Maersk hikes freight rate, imposes $1,000 container fee
Due to the continued hostilities of Houtis on the Red Sea and the need for shipping lines to take longer routes to avoid the volatile area, Maersk, one of the giant shipping lines in the world, has issued a trade notice stating that cargo en route to the US and Canadian ports will have to pay $1,000 per container from March 2, 2024 onwards.
Shippers are worried about the impact this might have on trade. It is to be noted that ever since the Red Sea Crisis, shippers have been experiencing delays in their cargo reaching destinations in the US.
CMA CGM, in December 2023, more than tripled its freight rates for all types of goods.
Usually, the rate increase would be different for boxes of different sizes—a 20-foot box or a 40-foot box.
Freight charges for a 20-foot container to the US today are around $4,200.
However, the risk is higher when shipping goods on a cost, insurance, and freight (CIF) basis, as the supplier takes on the cost of shipping and insurance.
The Red Sea crisis has also impacted Indian exporters adversely.
While operating costs are estimated to have increased by an additional $1 million due to the detour, the increase of $1,000 per container on a vessel with a carrying capacity of 18,000 twenty-foot equivalent units (teu) works out to $18 million.
The Red Sea is a vital waterway for global trade, particularly for the transportation of goods between Asia and Europe. The canal handles nearly 12 percent of global trade.
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Headlines
Mobereola, NIMASA DG, reflects on year 2025 with satisfaction, says 2026 holds promising opportunities for maritime industry
” You can therefore be sure of an increased momentum in our resolve to sustain maritime safety, security, environmental protection and adherence to relevant conventions and protocols with renewed vigour.”
The DG concluded by acknowledging the support of President Bola Ahmed Tinubu, Adegboyega Oyetola, Minister of Marine and Blue Economy, industry stakeholders, management and staff of NIMASA as well as all Nigerians and wished everyone a Merry Christmas and a prosperous New Year.
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