After the Houthi militia started attacking container ships in the Red Sea last year, the cost of shipping goods from Asia soared by over 300 percent, prompting fears that supply chain disruptions might once again roil the global economy.
The Houthis, who are backed by Iran and control northern Yemen, continue to threaten ships, forcing many to take a much longer route around Africa’s southern tip.
One reason for the optimism is that a huge number of container ships, ordered two to three years ago, are entering service.
Those extra vessels are expected to help shipping companies maintain regular service as their ships travel longer distances.
The companies ordered the ships when the extraordinary surge in world trade that occurred during the pandemic created enormous demand for their services.
Persons:
”, Brian Whitlock
Organizations:
Gartner
Locations:
Red, Asia, Iran, Yemen