US-led Forces in Red Sea will be Defensive ‘Highway Patrol’
The longer container lines detour from the Red Sea around the Cape of Good Hope, the more vessel capacity will be soaked up, and the higher freight rates will go. Rates are already rebounding. New surcharges just announced by ocean carriers imply freight costs are headed higher still.
Container lines have a perfectly valid reason to avoid going through the Bab-el-Mandeb Strait from a corporate governance perspective: They cannot guarantee the safety of their seafarers, ships or cargo due to indiscriminate attacks by Yemen’s Houthi rebels...
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