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The alternative route for ships traveling from Asia to Europe around the Cape of Good Hope adds about 3,500 nautical miles (6,482 kilometers) for a ship traveling to Europe from Singapore.
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1:25. European natural gas prices rebounded after a two-day slide as more attacks on vessels in the Red Sea raised the risk of prolonged disruptions to a key shipping route. Benchmark futures.
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Up to a quarter of the world's goods ship through the Bab al Mandeb, including critical energy supplies for Europe from the Persian Gulf. Photograph by Gallo Images, Orbital Horizon/Copernicus.
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Key Points. The Red Sea crisis is having a global ripple effect on freight rates with shipping costs between Asia and the U.S. now spiking as well. JPMorgan told clients the fight against.
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This is good news for shipping stocks. Maersk shares are up over 17% this week alone, their biggest weekly jump since April 2009, making them the biggest gainer in Europe's STOXX 600 benchmark.
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Major container ship operators like Maersk and Hapag-Lloyd are re-routing vessels away from the Suez Canal - the shortest route from Asia to Europe - after militant attacks on vessels in the Red Sea.
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The spot rate for shipping goods in a 40-foot container from Asia to northern Europe now tops $4,000, a 173% jump from just before the diversions started in mid-December, Freightos.com, a cargo.
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Global oil prices rose on Wednesday as concerns over delays in the Red Sea were compounded by reports of disruption to Libya's biggest oilfield. However, crude prices have remained relatively.
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Next has warned supplies of its products could be delayed if disruption to shipping in the Red Sea continues. Attacks by Houthi rebels on vessels in one of the world's busiest shipping lanes have.
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The cost of transporting a container to an East Coast port from China has soared to around $3,900 from $2,300 before the Red Sea attacks, says Zvi Schreiber, the chief executive of Freightos, a.