Sushi box exporters have been hit by the global crisis
The escalating situation in the Red Sea is hindering maritime shipping and having a significant impact on the global economy.
The Red Sea plays a crucial role as an international trade route for goods and energy, with the Suez Canal at its northern end providing a key passage to the Mediterranean, and the narrow Strait of Hormuz at its southern end leading to the Arabian Gulf. The Suez Canal is a vital channel for transporting fuel, food, and consumer goods from Asia and the Middle East to Europe. Data from Fretos Freight Company shows that about 30% of global containers and over a million barrels of oil are transported daily through the Suez Canal.
Since November last year, Houthi rebels have launched over 20 attacks on commercial vessels passing through the Red Sea. The attacks have increased in frequency since December, forcing shipping companies to change their routes and avoid the Red Sea. This has led to a sharp increase in long-distance shipping costs and caused delays lasting several weeks. From January 1 to 11 this year, the traffic volume in the Suez Canal decreased by 30% compared to the same period last year, and the average transportation cost of 12-meter containers has nearly doubled since late November.
Furthermore, a significant amount of trade transportation between Europe, America, Asia, and the Middle East relies on the Red Sea, so any disruption in the region could have a major impact on the global supply chain. This could lead to increased inflation, affecting the prospects of global economic recovery. According to reports from the Japanese media, about 47% of toys, 40% of appliances, and clothing transported on routes connecting Europe, America, and Asia may experience increased shipping costs and delayed arrivals. Some industrial materials may even have difficulty being delivered. Tesla, for example, recently announced a temporary halt in production at its German Gigafactory from January 29 to February 11, becoming the first car manufacturer to announce a production suspension due to the tense situation in the Red Sea.
Analysts predict that higher shipping costs will result in increased prices for consumers. If the situation in the Red Sea further deteriorates, container transportation costs will continue to rise, further impacting global trade. The escalation of the Red Sea situation would drive up commodity prices, and the World Bank has already issued a warning about the possibility of the global supply chain falling into danger.
The crisis in the Red Sea is impacting global maritime shipping, making exports challenging. As the Red Sea crisis continues, there is an increased demand for empty containers, and freight forwarders and shipping companies are actively addressing the situation. They are working diligently to find solutions and adapt to the challenges posed by the crisis. The focus is on meeting the growing demand for containers and ensuring the smooth flow of goods despite the disruptions in the Red Sea region.
SUNZZA Company sushi box exporters, if you need to export food containers and sushi box, please contact us！
The Red Sea plays a crucial role as an international trade route for goods and energy, with the Suez Canal at its northern end providing a key passage to the Mediterranean, and the narrow Strait of Hormuz at its southern end leading to the Arabian Gulf. The Suez Canal is a vital channel for transporting fuel, food, and consumer goods from Asia and the Middle East to Europe. Data from Fretos Freight Company shows that about 30% of global containers and over a million barrels of oil are transported daily through the Suez Canal.
Since November last year, Houthi rebels have launched over 20 attacks on commercial vessels passing through the Red Sea. The attacks have increased in frequency since December, forcing shipping companies to change their routes and avoid the Red Sea. This has led to a sharp increase in long-distance shipping costs and caused delays lasting several weeks. From January 1 to 11 this year, the traffic volume in the Suez Canal decreased by 30% compared to the same period last year, and the average transportation cost of 12-meter containers has nearly doubled since late November.
Furthermore, a significant amount of trade transportation between Europe, America, Asia, and the Middle East relies on the Red Sea, so any disruption in the region could have a major impact on the global supply chain. This could lead to increased inflation, affecting the prospects of global economic recovery. According to reports from the Japanese media, about 47% of toys, 40% of appliances, and clothing transported on routes connecting Europe, America, and Asia may experience increased shipping costs and delayed arrivals. Some industrial materials may even have difficulty being delivered. Tesla, for example, recently announced a temporary halt in production at its German Gigafactory from January 29 to February 11, becoming the first car manufacturer to announce a production suspension due to the tense situation in the Red Sea.
Analysts predict that higher shipping costs will result in increased prices for consumers. If the situation in the Red Sea further deteriorates, container transportation costs will continue to rise, further impacting global trade. The escalation of the Red Sea situation would drive up commodity prices, and the World Bank has already issued a warning about the possibility of the global supply chain falling into danger.
The crisis in the Red Sea is impacting global maritime shipping, making exports challenging. As the Red Sea crisis continues, there is an increased demand for empty containers, and freight forwarders and shipping companies are actively addressing the situation. They are working diligently to find solutions and adapt to the challenges posed by the crisis. The focus is on meeting the growing demand for containers and ensuring the smooth flow of goods despite the disruptions in the Red Sea region.
SUNZZA Company sushi box exporters, if you need to export food containers and sushi box, please contact us！
