Historic Fall in the Baltic Stock Exchange and Red Sea Crisis Shake the Shipping Industry!

Recent global developments have led to significant changes in shipping. As the Baltic Exchange shows, the main shipping index, which measures global transportation costs due to the impact of large ships, fell 3.8% to 1,460 points last Monday. This signals volatility in the shipping industry.

The Capesize index, in particular, is considered an indicator for ships carrying 150,000 tons of cargo such as iron ore and coal. This index fell 7.7% to 1,970 points, while the Panamax index fell 0.6% to 1,686 points, snapping a 10-session losing streak. This reflects the performance of ships carrying 60,000 to 70,000 tons of coal or grain.

Alongside these developments, the current situation in the Red Sea is further impacting global shipping costs. Increased attacks by the Houthis in Yemen on shipping in the Red Sea and tensions in the region are causing ships to change their routes. This change results in longer distances and increased fuel costs. For example, tanker rates for ships carrying gasoline, diesel and naphtha have increased due to the need to transport to Asia or sail longer distances around Africa. This increase has the potential to push up inflation globally, depending on world trade. If high transportation prices and equipment shortages continue, this situation is expected to persist for some time.

On the other hand, the China Container Freight Index (CCFI) has risen by a remarkable 12.9 percent in recent weeks, reaching 1287.49 points. This means that the index has reached its highest level in the last 13 months. This increase was particularly noticeable in South America, where the index rose by 15.9 percent, while South Africa was the only region to record a decline of 2.1 percent.

These developments are noteworthy for their impact on worldwide maritime transportation and global trade. Keeping a close eye on developments can provide important insights into future economic and trade trends.