Cargo prices are rising as 158 ships carrying ocean cargo worth approximately $105 billion have been diverted from the Red Sea due to the risk of continued attacks by the Houthis.

Ocean freight rates skyrocketed within a few hours on Thursday as a result of the increasing number of ships diverting from the Red Sea.

Logistics executives quoted an ocean freight rate of $10,000 per 40-foot container from Shanghai to the UK, CNBC reported. Prices last week were $1,900 for a 20-foot container and $2,400 for a 40-foot container. Truck fares currently offered in the Middle East are more than double.

IKEA, one of the companies that has said there will be delays in products reaching stores, told CNBC it is reviewing freight forwarding options, while Danone denies reports that it is experiencing short-term supply chain delays.

Source: www.foreks.com