The recent attacks on commercial vessels in the Red Sea have prompted shipping companies to reroute ships around Africa, avoiding the Suez Canal. While this adds costs for shipping companies, the impact could be more than offset by rising freight rates if disruptions continue. The re-routing of ships is notably affecting about 50 vessels passing through the Suez Canal daily, with container shipping expected to face the most significant freight rate increases.

In light of these maritime developments, a critical trade route comes under focus – the Far East to Europe corridor, a powerhouse for global trade. This trade route, witnessing an annual shipment of 2,32,97,000 TEUs valued at $16.65 million, is now navigating through challenges that require careful consideration for strategic planning in 2024.