Paul Berger and Costas Paris of The Wall Street Journal inform readers that importers are facing surging shipping costs, which have nearly doubled since late November. They write:
Western importers are reporting a steep rise in ocean-shipping rates and weekslong delays as carriers divert ships from the Red Sea to avoid Houthi rebel attacks.
Some companies shipping goods on the crucial trade lane are starting to chafe at the rising prices and extra fees that ocean carriers are imposing for the higher cost of routing containerships on longer voyages around the Horn of Africa following drone and missile attacks by Houthi rebels in Yemen.
Average worldwide costs to ship 40-foot-long containers have nearly doubled since late November, according to London-based Drewry Shipping Consultants. […]
Nathan Strang, director of ocean freight at San Francisco, Calif.-based freight forwarder Flexport, said one customer who brings cargo into the Port of New Orleans has seen import times double to 60 days after the company’s shipments were rerouted.
“How do you tell your end customer when their stuff is going to arrive and when they can put stuff on shelves?” he said.
Read more here.