THE New Zealand timber industry is closely monitoring the Red Sea conflict as global shipping costs escalate due to disruptions in the supply chain, reports Radio New Zealand (RNZ).
The US is making strategic advancements in the region following a series of attacks on commercial cargo ships by Houthi forces in recent months.
Rabobank has noted that cargo vessels are opting to avoid the risk of further attacks at the Suez Canal by detouring Africa's Cape of Good Hope, thereby adding weeks to the voyage.
Researcher Stefan Vogel has indicated that this shift in shipping routes will likely result in increased transportation expenses for products such as milk powder, red meat, and logs being shipped from New Zealand to Europe.
'Every vessel that's longer at sea is slower to load their next cargo, and that's limiting the available shipping capacity and driving freight costs up,' said Mr Vogel.
Mr Vogel said another concern was the availability of containers, as seen during the global supply chain disruptions from 2021 during the Covid crisis.
'A similar struggle for containers could materialise again if the Red Sea issues tighten global container freight capacity further.'
SeaNews Turkey
The US is making strategic advancements in the region following a series of attacks on commercial cargo ships by Houthi forces in recent months.
Rabobank has noted that cargo vessels are opting to avoid the risk of further attacks at the Suez Canal by detouring Africa's Cape of Good Hope, thereby adding weeks to the voyage.
Researcher Stefan Vogel has indicated that this shift in shipping routes will likely result in increased transportation expenses for products such as milk powder, red meat, and logs being shipped from New Zealand to Europe.
'Every vessel that's longer at sea is slower to load their next cargo, and that's limiting the available shipping capacity and driving freight costs up,' said Mr Vogel.
Mr Vogel said another concern was the availability of containers, as seen during the global supply chain disruptions from 2021 during the Covid crisis.
'A similar struggle for containers could materialise again if the Red Sea issues tighten global container freight capacity further.'
SeaNews Turkey
