Shipping Shows Signs of Panic as Houthis Menace Key Trade Lane
- Shippers are likely to face a crunch before Lunar New Year
- Suez Canal transits fall to lowest level since it was blocked
A bulk carrier ship moored at the Red Sea port of Hodeida, Yemen in 2022.
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Container shipping is set to face a crunch ahead of the Lunar New Year holiday as Houthi attacks in the Red Sea restrict capacity, a major industry consultant said.
The coming weeks are likely to be very difficult as trade volumes ramp up before Lunar New Year, which begins Feb. 10, according to Philip Damas, Managing Director and Head of Supply Chain Advisors at Drewry Shipping. Diversions as a result of the attacks are forcing ships to sail thousands of miles further than normal and are therefore restricting the amount of vessels able to carry goods.