Trade
Shipping Costs Soar as War and Climate Risks Upend Trade
- Rates for certain classes of tankers spike due to diversions
- Houthi attacks, low water levels have choked global flows
A Suezmax crude oil tanker, right.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Global shippers of crude and fuels are grappling with a spike in booking costs for some tankers taking lengthy diversions to avoid disruptions at the Suez and Panama canals.
Chartering costs for a so-called Suezmax, the largest class of oil tanker that can pass through the Suez Canal with its tanks full, soared as more ships opted to sail around Africa to avoid attacks in the Red Sea. They can carry 1 million barrels of oil when fully laden, and are often used to transport crude from Russia or the Mediterranean Sea to Asia, or from the Middle East to Europe.