Freight prices rise as attacks on ships in the Red Sea increase

The attack by Houthi rebels on a vessel belonging to the trading company Trafigura in the Red Sea has caused oil freight and diesel prices to rise sharply. Prices are now almost five times higher than they were in November. Many tankers are now choosing to pass through the Cape of Good Hope to avoid the Red Sea. This diversions increases the transit time between the Persian Gulf and northern Europe by 70%. Diesel prices have risen by 15% since 15 December to reach $845 per tonne.