The activity of merchant ships in the Red Sea has dropped sharply, and container freight rates on the Eurasian route have continued to rise. International shipping is facing a new threat that "the Mediterranean Sea may be closed." According to the latest data from Clarkson Research Services, the total tonnage of container ships arriving in the Gulf of Aden has plummeted by 82% in the past four days compared with the first half of this month.


A report released by the Ningbo Shipping Exchange on December 22 shows that 85% of container ship liner companies have notified them to suspend the pickup of cargo on the Red Sea route.

Many merchant ships bound for Europe and Asia abandoned the Red Sea-Suez route and diverted to the Cape of Good Hope. Logistics company Kuehne+Nagel International AG released a report on Wednesday that at least 100 container ships were diverted near the Cape of Good Hope; this weekend, the number of diverted ships will be even greater.


This means that the shipping distance and transportation costs of global merchant ships will increase significantly. According to media estimates, global voyages have increased by 40%, and transportation costs have increased by more than 40%.

This has driven the domestic container shipping index and market freight rates to continue to rise. The main contract of Container Shipping Index (European Line) futures has hit the daily limit for five consecutive trading days, with a cumulative increase of more than 50% in a week.


The latest weekly report from the Shanghai Shipping Exchange shows that the comprehensive freight market index for Asia-Europe routes rose 14.8% to 1,254.99 points; the Red Sea Route Index released by the Ningbo Shipping Exchange also rose 161.9% from last week to 3,649.5 points.

The report shows that the freight rates for exports from Shanghai Port to Europe and the Mediterranean basic port market have reached US$1,497/TEU (20-foot containers) and US$2,054/FEU (40-foot containers), and the freight rates for the Persian Gulf route have also reached US$1,477/TEU.

In addition, media data shows that the current Shanghai-UK freight quotation has jumped to US$10,000/FEU. Last week, the price was only $2,400.

Ikea, a large home furnishings retailer, has experienced supply chain tensions due to extended flights. An IKEA spokesperson publicly stated:

"What we can tell you is that the situation in the Suez Canal will cause shipping delays and may cause supply constraints for some IKEA products."

"This is our top priority."

Previously, 8.8 million barrels of oil and nearly 380 million tons of cargo passed through this channel, which carried 12% of international trade and nearly 1/3 of global container transportation volume every day.

Is the Mediterranean Sea closed?

According to the Securities Times, as of December 20, many large shipping companies such as Maersk, Hapag-Lloyd, Mediterranean Sea, CMA CGM and Evergreen Marine Line have announced the suspension of the Red Sea-Suez Canal route and detouring to the Cape of Good Hope, and at least 13 shipping companies have announced detour plans.

At present, the Red Sea seems to be entering a "freezing period", and the global supply chain may face the risk of paralysis.

According to a report quoted by the Shanghai Securities News, a commander of the Iranian Revolutionary Guards said that if the United States and its allies continue to commit "crimes" in Gaza,The Mediterranean Sea could be closed, but he did not explain how.

According to the report, Tasnim News Agency quoted Brigadier General Mohammad Reza Naqdi as saying:

"They will soon wait for the closure of the Mediterranean, Gibraltar (Strait) and other waterways."