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Red Sea attacks make shipping five times more expensive

Freight forwarders admit rising sea freight prices, although below the “crazy” prices of the pandemic. The automotive sector calls for reindustrialization, national and European.

Attacks by Huthi rebels on ships in the Red Sea and the Gulf of Aden, which provides access to the Suez Canal, ensuring the shortest maritime link from Asia to Europe, are causing serious damage to European industry and Portugal is no exception. The obligation to use longer routes, via the Cape of Good Hope, results in delays in deliveries, but also in increased costs, with fuel and more. Freight forwarders are already talking about freight costing five times more, “but still far from the madness” of pandemic prices. The automotive industry warns of the “domino effect” and regrets that the reindustrialization of the European space is delayed and “outside the concerns of national policy makers”.

According to the Pentagon, since November 19, the Huthi rebels, who control part of Yemen, have launched 35 attacks against ships in the Red Sea and the Gulf of Aden. The uncertainty of the situation has led to the search for alternative solutions and getting goods from point A to point B, as quickly and efficiently as possible, is the daily work of a freight forwarder, even more difficult these days. APAT, the Association of Freight Forwarders of Portugal, advises members to work on preventive logistics.

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