Global shipping costs are experiencing a new round of severe shocks, with container freight rates surging by 201%, nearing the crisis peak of 2021, while geopolitical turmoil has pushed tanker charter rates to historical highs. Analysts warn that if the pressure persists, it will further strengthen inflation and drag down economic growth.
Bank of America analyst Lorraine Hutchinson noted in a research report last Saturday that sea freight rates have jumped by 201%, approaching the 250% peak increase seen during the container shortage in 2021. ShippingChina.com, citing data from shipbroker Gibson, reported that due to escalating tensions in the Strait of Hormuz and the Bab-el-Mandeb Strait, the daily charter rate for VLCC (Very Large Crude Carrier) TD3C route has exceeded $1.24 million.
The Houthi group stated on September 19 that it had launched military operations against "sensitive targets" in the Saudi capital Riyadh and Saudi Aramco's Yanbu facilities. Saudi Aramco has informed at least two European refinery clients that it will be unable to fulfill crude oil delivery obligations next month due to pipeline attacks.
Global shipping costs surge 201%, nearing 2021 peak; tanker charter rates hit record highs; Saudi Aramco suspends crude oil deliveries due to attacks.
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