Global: Shipping companies increase freight prices for some coffee routes, says ICO

Published 2024년 1월 3일

Tridge summary

Attacks in the Red Sea by the Iran-backed Houthi group have led to increased freight prices for shipping companies transporting coffee in containers, as ships have been forced to detour to avoid the attacks. The situation has resulted in extended transit times and increased freight costs for coffee from Southeast Asia and East Africa on its way to Europe, impacting European roasters who import from these regions. Delays in the global flow of containers due to longer voyages could also have additional consequences for the coffee, cocoa, and cotton markets.

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Original content

By Marcelo Teixeira NEW YORK (Reuters) - Shipping companies that transport coffee in containers have increased freight prices on some routes as a result of attacks in the Red Sea that forced ships to detour, the International Coffee Organization (ICO) said on Wednesday . The Iran-backed Houthi group, which controls much of Yemen including the capital, has attacked commercial ships in the Red Sea that claim to have Israeli links or sail to Israel, in solidarity with Palestinians in Gaza. The Houthis said on Wednesday they were "targeting" a container ship operated by CMA CGM, just days after another attack on a Maersk vessel. The ICO said in a report that the situation in the region led some shipping companies to reroute their voyages to reduce risks. "So for coffee from Southeast Asia and East Africa on its way to Europe, the unintended consequences include an increase in freight costs as some shipping lines have introduced surcharges to compensate for now-extended transit times," ...

Source: NoticiasAgricolas