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Shipping: Terrorist Attacks Causing Delays as Freight Rates Skyrocket

Worldwide every third container is affected – Houthi attacks in the Red Sea are causing havocs with global supply chains. Most container shipping companies now choose the detour around Africa, transport capacity is becoming scarce. Logistics expert warn of bottlenecks in the coming weeks.

Supply-chain bottle necks disrupted digital signage hardware logistics during the pandemic, in addition a wrecked container vessel blocked the Suez Canal in spring 2021. Now the most important shipping route is dominating the news again and threatens to disrupt supply chains again.

Yemen’s Houthi rebels attacked more than 20 merchant ships in the Red Sea – now many shipping lines are avoiding the dangerous but much shorter route and prefer a 14 days detour around the African continent. In just four weeks, average freight rates worldwide have risen by 60 percent according to the Shanghai Containerized Freight Index (SCFI).

Still limited effects on digital signage

After stocks of consumer goods in Europe are exhausted after the holiday season, first shortcomings could be noticeable from February onwards. Stock of professional displays and LED is still sufficient as demand has been much weaker than expected in 2023.

But according to shipping experts, global container capacity will be reduced by almost a third leading to dramatically increased freight rates and much larger carbon footprint.