Shipping costs are rising after Red Sea attacks force vessels to take longer routes

Maersk and CMA CGM have implemented new charges for shipping goods along busy routes due to vessel re-routing away from the Red Sea following attacks. Maersk will impose a Transit Disruption Surcharge (TDS) and an Emergency Contingency Surcharge (ECS) on 27 trade routes, while CMA CGM will introduce surcharges on 11 routes. The companies cite risks and delays in sailing through the Red Sea. As a result, shipping companies, including Hapag-Lloyd and MSC, are avoiding the Suez Canal due to concerns for crew and vessel security. The situation has led to longer transit times and increased costs. IKEA has issued warnings of delays and possible product constraints. Oil flows are also being disrupted, with Brent crude prices rising.