Maritime freight rates have seen a surge of up to 400% over the past six months, affecting Brazil amidst global inflationary pressures. This increase is partly due to attacks by the Houthis on merchant vessels in the Red Sea, a critical passageway to the Suez Canal, which accounts for about 15% of worldwide cargo transport. The necessity to reroute around Africa, adding up to 30 days to voyages, has led to increased freight and maritime insurance costs.
Despite the Houthis' opposition to Israel, most of the targeted vessels have no links to the country. Jackson Campos, a foreign trade expert and director at AGL Cargo, mentioned a rise in maritime freight from US$ 2,000 to 10,000 within six months. He highlighted ongoing container shortages due to excess cargo and high demand, with no immediate prospects for rate declines. Shipowners are currently opting for short-term negotiations, with unpredictable price ceilings.
Eliane Octaviano, a columnist and director at the Maritime Law Academy, observed significant freight rate increases, particularly on the Asia-Brazil route, where rates have more than doubled. The re-routing of ships has led to heightened freight and insurance costs, with insurance prices for Israeli maritime companies rising by up to 250%. This scenario has led to increased costs for consumers, contributing to inflation and reduced purchasing power.
Additional factors exacerbating the situation include global geopolitical tensions, climate-related issues affecting maritime routes, and logistical challenges within Brazilian ports. Octaviano's outlook remains pessimistic as long as conflicts and attacks continue, foreseeing worsening conditions.
Source: datamarnews.com