Happy New Year everyone! Things are escalating in the Red Sea as shipping giants such as Maersk and Hapaq-Lloyd haven’t been convinced by the military efforts in the Red Sea and have now completely avoided transporting goods from Asia to Europe through the Red Sea. That can be seen in prices which have seen one-way traffic the last week.

Freight rates are up >100% this week, and we hear from sources that Maersk is now suggesting an all-in rate of USD 6000 TEU. These costs encompass additional costs such as war premium, issuance, legal and extra crew. Furthermore, Maersk is considering the option of entering into Time Charter (TC) agreements for durations of 8-12 months under these terms, responding to customer concerns about delays in receiving goods for the summer season.

Learn more about the situation below.

Chart 1: Freight rates are rising fast