The German Shipowners' Association (VDR) revealed that shipping companies incurred an additional cost of about one million dollars per voyage, due to the diversion to the Cape of Good Hope route around the southern tip of Africa, to avoid attacks on ships in the Red Sea.
The attacks forced ships to change course to orbit the southern tip of Africa, driving up the cost of this longer journey. The attacks have already delayed the delivery of products destined for many companies, with companies such as Walmart, IKEA, and Amazon using the Suez Canal route. The Suez Canal connects the Red Sea to the Mediterranean Sea and is the fastest way to ship fuel, food, and consumer goods from Asia and the Middle East to Europe.
Source (Al-Khaleej Emirati Newspaper, Edited)
