And the number started at $2,400 pre-jump, so we’re talking about big numbers here.

The situation concerning the Red Sea has been going on for a bit now. Normally, around 12 percent of global trade passes through the Red Sea and the Suez Canal.

Quick Overview

TLDR: The reason for the attacks stems from the Israel-Hamas conflict. It’s been reported that the Houthis, those responsible for targeting vessels, are backed by Iran. The movement has announced that it will continue attacking vessels that sail near Yemen for as long as the war continues.

Investors and the markets have been wary about the attacks’ impact on global trade. Along with oil company BP, many shipping companies have rerouted to avoid being targeted. Oil prices rose in response to the news.

On December 21st, the quoted ocean freight rate from Shanghai to the UK was $10,000 per 40-foot container. Just the week prior, rates were $1,900 for a 20-foot container to $2,400 for a 40-foot container.

Expert Opinion: Positivity

We at Bloomberg Economics think the Red Sea disruptions will have a small economic impact. Luckily, this is happening when there’s spare shipping capacity and energy prices are lower than 1-2 years ago.

Gerard DiPippo, Senior Geoeconomic Analyst at Bloomberg

Newest Update

On December 24th, shipping company Maersk announced they would resume voyages through the region after a previously-announced multinational national security initiative called Operation Prosperity Guardian was finally deployed. The US-led military operation will protect vessels from missiles and drones to protect the freedom of navigation in international waterways.

Check out our previous business post which looks at Macy’s buyout bid and the company’s financial statements.