Posted on December 18, 2023

The threats to shipping around Egypt’s Suez Canal may increase freight rates from Asia to Europe or to the US East Coast as ships take alternative, longer routes.

If all freight shipping trades via Suez are re-routed, there will be about a 6% effective supply reduction in the container industry, analysts estimate.

Given ships need to detour and the news would raise freight rates, shipping shares would rise in price.

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