As tensions in the vital maritime route continue to increase, Israel's state media announced that the Chinese state-owned shipping behemoth Cosco has stopped shipments to Israel via the Red Sea.
As per Globes, an Israeli financial news outlet, Cosco's decision's details are still unknown.
Attacks by Iran-backed Houthi terrorists on ships navigating the Red Sea have increased ocean freight charges and caused lengthier shipping routes as merchants choose to circumnavigate South Africa's Cape of Good Hope.
Cosco's shares listed in Hong Kong saw a 3% decrease on Monday.
Carriers have already redirected more than $200 billion in trade over the past several weeks in order to avoid attacks by the extremists headquartered in Yemen, and major shipping companies like Maersk and Hapag-Lloyd have suspended shipping through the Red Sea until further notice.
The largest shipping company in China, Cosco accounts for over 11% of the total market share in commerce.
Due to operational concerns, the Cosco Shipping Group company Orient Overseas Container Line (OOCL) has likewise ceased accepting cargo intended for Israel and has suspended operations to the Red Sea since December.
“COSCO’s decision is significant because it cooperates with Israeli shipping line ZIM, which will have to operate more ships on the Far East routes,” Globes reported. Cosco has another line it jointly operates with Zim.
There were no comments on the issue available from Cosco and Zim.
(Source:www.newsbreak.com)
As per Globes, an Israeli financial news outlet, Cosco's decision's details are still unknown.
Attacks by Iran-backed Houthi terrorists on ships navigating the Red Sea have increased ocean freight charges and caused lengthier shipping routes as merchants choose to circumnavigate South Africa's Cape of Good Hope.
Cosco's shares listed in Hong Kong saw a 3% decrease on Monday.
Carriers have already redirected more than $200 billion in trade over the past several weeks in order to avoid attacks by the extremists headquartered in Yemen, and major shipping companies like Maersk and Hapag-Lloyd have suspended shipping through the Red Sea until further notice.
The largest shipping company in China, Cosco accounts for over 11% of the total market share in commerce.
Due to operational concerns, the Cosco Shipping Group company Orient Overseas Container Line (OOCL) has likewise ceased accepting cargo intended for Israel and has suspended operations to the Red Sea since December.
“COSCO’s decision is significant because it cooperates with Israeli shipping line ZIM, which will have to operate more ships on the Far East routes,” Globes reported. Cosco has another line it jointly operates with Zim.
There were no comments on the issue available from Cosco and Zim.
(Source:www.newsbreak.com)
