Image Source: UnsplashThe situation in the Red Sea is grim. Most shipping is rerouted. A time-lapse video shows the disruption. Big shipping surcharges in play.Red Sea Headlines Starting December 18The Wall Street Journal reports Maersk Pauses Transit Through Red Sea Until Further Notice After Attack on Ship

Danish shipping giant A.P. Moeller-Maersk MAERSK.B 6.38%increase; green up pointing triangle said it will pause all transit through the Red Sea and Gulf of Aden until further notice following the attack on its vessel Maersk Hangzhou on Dec. 30.

Maersk Hangzhou, a Singapore-flagged container vessel that operates between Europe and Asia, came under missile attack on Saturday evening, the U.S. said. Four boats later approached the vessel, shot at it and attempted to board it, according to Moller-Maersk.

Early Sunday, helicopters from nearby U.S. Navy vessels responded to fire coming from boats controlled by Houthis, an Iranian-backed rebel group in Yemen, sinking three of them and killing the crews, the U.S. said. The fourth boat fled. The Houthis later claimed the attack and said they lost 10 fighters in the encounter.

Earlier Tuesday, Hapag-Lloyd said it will continue to avoid Red Sea transits and reroute its vessels around the Cape of Good Hope until at least Jan. 9 in response to the recent attacks.

Time Lapse

How the world changed in 10 days

Time-lapse visualizes the Yemeni blockade on the Red Sea. pic.twitter.com/vOAWbljtGo

— S p r i n t e r (@Sprinter99800) January 2, 2024
Further Notice

Container shipping giant A.P. Moller-Maersk A/S says that it will again avoid the Red Sea “until further notice”.

This is a major setback to the US-led armada that’s (supposedly) providing security in the region against the Houthis from Yemen | #RedSea https://t.co/mVH9VjHtEC

— Javier Blas (@JavierBlas) January 2, 2024
The Last Mile

Freight rates were $2k; this doubles them.

The “last mile” to 2% inflation got harder.
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Container lines most affected by geopolitical unrest in Red Sea, with surcharges as high as $2,000 per teu announced to compensate for the cost of transiting around Cape of Good Hope https://t.co/7S9fcwDPt3

— Jim Bianco (@biancoresearch) January 2, 2024
The “last mile” to 2% inflation got harder. — Container lines most affected by geopolitical unrest in the Red Sea, with surcharges as high as $2,000 per teu announced to compensate for the cost of transiting around Cape of Good Hope.More By This Author:Why Biden’s Approval Rating Is Miserable In One Economic Chart Why Predictions Of When The Price Of Rent Will Fall Have Been Wrong How Russia Makes A Mockery Of U.S. Sanctions In One Picture