Freightos Limited (CRGO)

Shipment rates soar 4x after Red Sea attacks: CEO

Global shipping rates have spiked due to recent attacks on vessels in the Red Sea. Freightos CEO Zvi Schreiber (CRGO) joins Yahoo Finance's Rachelle Akuffo to discuss why numerous shipping companies have rerouted to avoid the area, lengthening journeys. Schreiber notes Red Sea routes saw costs jump from $1,200 in November to $4,800 currently - nearly a 4x increase since the assault threats emerged. Still, he says this pales in comparison to peak COVID-era pricing, which surpassed $15,000 per container. "Although we're seeing a big spike, it's still moderate," compared to the pandemic era, Schreiber says. The China-to-Europe corridor is among the most impacted by rerouting, with ships circumventing Africa instead, explains Schreiber. This major detour dramatically escalates costs and shipping timelines to Mediterranean and regional ports. Meanwhile, droughts have also temporarily constrained transit through the Panama Canal to the US East Coast. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith