The head of a ** container logistics platform said on Wednesday that due to overcapacity in the market,The attack on Red Sea shipping has led to the use of containers*** by merchant ships in 3 to 9 months to fall back to early December levels.
As Iranian-backed Yemeni militants attacked merchant ships in the Red Sea, forcing major shipping lines to reroute, containers in Rotterdam and Hamburg were about 10% higher than last week's volume to $1,310-$1,350 per 40-foot-tall cube.
Rolove, co-founder and CEO of Container Xchange, said: "Due to the container detour to the Cape of Good Hope at the southern tip of Africa, it is expected that the number of containers arriving on time will decrease, resulting in containers***
Oil giant BP (BP) suspended all Red Sea routes, and a slew of top shipping lines, including Maersk, began to change the usual shipping routes through the Suez Canal. This new route around Africa increases travel times and raises costs.
Rolov expects that the new US-led multinational operation will protect the Red Sea** and allow goods to pass through the Suez Canal, which, combined with the overcapacity of the container market, will help control the container**.
It is estimated that the realignment will add 10-12 days to transit time, which Roloff said will consume between 1.4 million and 1.8 million 20-foot equivalent containers (TEU), or about 5% of global container capacity.
He said".The overcapacity of container shipping is so large that even absorbing 5% of capacity will not have a long-term impact on containers**. He added that he expects ** to fall back to pre-attack levels.