10 January 2024 – Now that freight rates from India have jumped by up to 400%, even for routes that do not touch the Red Sea, the question arises as to whether shipping lines are shamelessly exploiting the situation. Is this threatening them with a political and economic own goal? First voices call for NATO deployment in the Red Sea.
Red Sea: Are shipping lines shamelessly exploiting the situation?
Price shock in India
Indian freight rates are climbing to dizzying heights – by up to 400%! Yet many routes are not even affected by the attacks by the Houthi rebels. A clear case of exploiting the crisis situation, and not only in India?
Military protection at sea
While the shipping companies are cashing in, warships are patrolling the crisis area. The USA, led by the USS Dwight D. Eisenhower, the British Royal Navy and even India’s own navy are deployed. More than 10 nations have already sent warships or announced their intention to do so. An international contingent to secure the trade routes.
Iran gets involved
Iran promptly responds to the destruction of rebel attack boats by the US Navy with a warship of its own. A sign: The countries concerned are ready to intervene militarily.
NATO debate: Should the alliance intervene?
In at least one NATO member state, the first voices have already been raised calling for the defense alliance to intervene. Should trade routes be protected at all costs?
Doubts about the high freight rates
Shipping companies that allow themselves to be militarily protected and at the same time increase prices for their customers – especially for routes that are not affected at all. Is this threatening them with a political and economic own goal?
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