On 12 January, the US and UK launched a series of military strikes in Yemen aimed at Houthi rebels, hitting 60 targets in 28 locations.
With the new dangers in the Red Sea region, many ships are rerouting around the Cape of Good Hope to avoid the area, which adds nearly 4,000 nautical miles and about 10 days more travel time to the journey.
The effect has increased the average cost of shipping a 40ft container from $4,300 the weekend of 13 January to $5,650 as of 16 January, up from $1,875 this past December.
William Bain, head of trade policy at the British Chamber of Commerce, said, “As the price increases on shipping feed through into business costs, and supply chain disruption deepens, it will almost certainly place upward pressure on inflation.”
The Houthis have said they will continue their attacks on ships in the Red Sea until Israel stops its attacks on Gaza.