Red Sea stability may reduce freight costs by 25%
News: Sea freight prices could drop by 25% within months if Red Sea attacks are controlled, says DP World’s deputy CEO.
Houthi attacks on over 100 ships since November 2023 have forced vessels to reroute around Africa, raising costs. Stopping these attacks would allow normal shipping through the Red Sea and Suez Canal, reducing expenses.
The U.S. has imposed sanctions on Yemen Kuwait Bank for alleged ties to the Houthis and re-designated the group as a terrorist organization to curb attacks. DP World’s Narayan believes stability could restore Red Sea shipping within two weeks, easing freight costs and global trade disruptions.
Source: supplychain247
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