From Nasdaq:

Toymaker Basic Fun is working to reroute its cargo from the Suez Canal to avoid risks from militant attacks in the Red Sea. A third of global container ship cargo uses the Suez Canal, requiring the cost of re-routed ships to rise by $1 million. Suppliers are bracing for upends due to Yemeni Houthis’ ongoing missile attacks.

Florida-based Basic Fun usually ships Europe-bound toys from its China factories via the Suez Canal, but due to the recent missile strikes, it’s now embarking on a longer route to send toys to the UK and Rotterdam. The company is also diverting some goods bound for the U.S. East Coast from the Suez Canal to the Panama Canal to deal with a shortage of vessel space and higher transport prices.

Rates for some China-UK freight have increased to $4,400 per container. Maersk and CMA CGM are resuming voyages through the Red Sea, however, the biggest impact is expected to surface over the next six weeks. About 20% of the global container fleet, including 364 container ships have been rerouted due to the recent Red Sea attacks.

Approximately 20% of the global container fleet and 364 container ships have been rerouted due to recent attacks in the Red Sea. Flexport has seen customers being rationed the agreed upon amount of containers at a fixed rate and allows the remainder to be subject to spot rates. Short-term price increases are expected due to the crisis.

Since the recent Red Sea attacks, Basic Fun has seen prices for China-UK freight double. There is now a rush to reconfirm every single booking of imported/exported goods out of China. However, small shippers are now most at risk of being elbowed out as a result of the crisis. Basic Fun has 40 containers dry before the Lunar New Year and attempts to recover the costs for the increase.



Read more: Red Sea shipping workarounds add costs, delays for suppliers, retailers