Shipping Firms Impose Extra Fees as Red Sea Attacks Hit Global Trade

10 January 2023, Baden-Wuerttemberg, Horb am Neckar: A container with the logo of A. P. Moller-Maersk Group stands at the Black Forest Terminal (BFT) site. (dpa)
10 January 2023, Baden-Wuerttemberg, Horb am Neckar: A container with the logo of A. P. Moller-Maersk Group stands at the Black Forest Terminal (BFT) site. (dpa)
TT

Shipping Firms Impose Extra Fees as Red Sea Attacks Hit Global Trade

10 January 2023, Baden-Wuerttemberg, Horb am Neckar: A container with the logo of A. P. Moller-Maersk Group stands at the Black Forest Terminal (BFT) site. (dpa)
10 January 2023, Baden-Wuerttemberg, Horb am Neckar: A container with the logo of A. P. Moller-Maersk Group stands at the Black Forest Terminal (BFT) site. (dpa)

Some of the world's largest shipping firms, including Maersk and CMA CGM, will impose extra charges after they re-routed ships in response to attacks on vessels in the Red Sea, as worries about disruption to global trade grow.

The surcharges, designed to cover longer voyages around Africa compared with routes via the Suez Canal, will add to rising costs for sea transport since Yemen's Iran-backed Houthi militias started targeting vessels.

Maersk and CMA CGM were the first to introduce the fees, followed by Germany's Hapag-Lloyd later on Friday.

The three are among leading shipping lines to have suspended the passage of vessels through the Red Sea that connects with the Suez Canal, the quickest sea route between Asia and Europe.

Instead, they are directing ships around the Cape of Good Hope at the southern tip of Africa, adding about 10 days to a journey that would normally take about 27 days from China to northern Europe.

Citing "severe operational disruption", Maersk said late on Thursday it was imposing an immediate transit disruption surcharge (TDS) to cover extra costs associated with the longer journey, plus a peak season surcharge (PSS) from Jan. 1.

Hapag-Lloyd has said it would redirect 25 ships by the end of the year to avoid the area.

On Friday, Chinese automaker Geely told Reuters its electric vehicle sales were likely to be hurt by a delay in deliveries to Europe, the latest company to warn of disruption.

China's second largest automaker by sales said most of the shipping firms it uses for European exports have plans to go around southern Africa.

The alert bodes ill for other automakers in China as they seek to increase exports to Europe due to overcapacity and weak demand at home.

The United States has announced a multinational force to patrol the Red Sea, but shipping sources say details have yet to emerge and companies continue to avoid the area.

In a message to customers, logistics firm CH Robinson Worldwide said it had re-routed more than 25 vessels to southern Africa over the past week.

"That number will likely continue to grow due to ongoing war risks in the Red Sea and the drought in the Panama Canal," it said.

Surcharges

CH Robinson said cancellations and rate increases were expected to continue into the first quarter and recommended customers book 4-6 weeks in advance to ensure space on vessels.

Maersk said a standard 20-foot container travelling from China to Northern Europe now faced total extra charges of $700, consisting of a $200 TDS and $500 PSS.

Containers bound for the east coast of North America will be charged $500 each, consisting of the $200 TDS payment and a $300 PSS, the company added.

Maersk also said routes in other parts of its network would be affected by the Suez disruption, triggering emergency contingency surcharges on a wide range of journeys.

CMA CGM announced surcharges late on Thursday including an extra $325 per 20-foot container on the North Europe to Asia route and $500 per 20-foot container for Asia to the Mediterranean.

The charges were part of its contingency plan to re-route vessels around the Cape of Good Hope, it said.

France-based CMA CGM listed 22 of its vessels as having been re-routed.



Cluster2 Company Launches Direct Flights from Muscat to Saudi Arabia's Taif

 Three direct flights will take place per week between Muscat and Taif via Oman Air - SPA
Three direct flights will take place per week between Muscat and Taif via Oman Air - SPA
TT

Cluster2 Company Launches Direct Flights from Muscat to Saudi Arabia's Taif

 Three direct flights will take place per week between Muscat and Taif via Oman Air - SPA
Three direct flights will take place per week between Muscat and Taif via Oman Air - SPA

The Cluster2 Company, operator of Taif International Airport, announced the launch of three direct flights per week between Muscat and Taif via Oman Air, starting January 31, SPA reported.

The launch of international flights through the cluster’s airports comes as part of its ongoing commitment to improving the passenger experience and expanding international travel options, while continuing to build strategic partnerships with global airlines to enhance air connectivity in the Kingdom.


Oil Prices Rise as US Ramps up Action against Venezuela Tankers

A view shows an oil pump jack outside Almetyevsk, in the Republic of Tatarstan, Russia July 14, 2025. REUTERS/Stringer
A view shows an oil pump jack outside Almetyevsk, in the Republic of Tatarstan, Russia July 14, 2025. REUTERS/Stringer
TT

Oil Prices Rise as US Ramps up Action against Venezuela Tankers

A view shows an oil pump jack outside Almetyevsk, in the Republic of Tatarstan, Russia July 14, 2025. REUTERS/Stringer
A view shows an oil pump jack outside Almetyevsk, in the Republic of Tatarstan, Russia July 14, 2025. REUTERS/Stringer

Oil prices rose on Monday after the US intercepted ​an oil tanker in international waters off the coast of Venezuela and tensions in Russia's war against Ukraine remained high, with both developments raising fears of supply disruption.

Brent crude futures gained $1.31, or 2.17%, to $61.78 a barrel by 1316 GMT. US West Texas Intermediate crude rose by $1.25, or 2.2%, to $57.77.

Market participants now see a risk of disruption to Venezuelan oil exports because of the US ‌embargo, having previously ‌been complacent in that regard, said ‌UBS ⁠analyst Giovanni ​Staunovo.

Venezuelan crude ‌accounts for about 1% of global supply.

Growing supply from the US and the OPEC+ producer group have largely offset worries over supply disruption elsewhere to keep Brent futures around $65 a barrel in the second half of 2025, though prices have eased in the past month because of oversupply concerns.

Oil prices have been supported by developments off Venezuela while ⁠Russia-Ukraine tensions simmer in the background in an otherwise very bearish market, said June ‌Goh, analyst at Sparta Commodities.

The US Coast ‍Guard is pursuing an oil ‍tanker in international waters near Venezuela in what would be the ‍second such operation over the weekend and the third in less than two weeks if successful, officials told Reuters on Sunday.

A rebound in oil prices has been sparked by US President Donald Trump's announcement of a "total ​and complete" blockade of sanctioned Venezuelan oil tankers and subsequent developments there, followed by reports of a Ukrainian drone strike ⁠on a Russian shadow fleet vessel in the Mediterranean, said IG analyst Tony Sycamore.

The Brent and WTI benchmarks fell by about 1% last week.

US special envoy Steve Witkoff said on Sunday that talks between US, European and Ukrainian officials in Florida over the past three days in an effort to end Russia's war in Ukraine had focused on aligning positions. Those meetings and separate talks with Russian negotiators had been productive, he said.

However, the top foreign policy aide of Russian President Vladimir Putin said that changes made by the Europeans ‌and Ukraine to US proposals had not improved prospects for peace.


GASTAT: Construction Costs in Saudi Arabia Rose 1% in November

The monthly Construction Cost Index survey results showed price stability in November 2025 compared with October 2025. SPA
The monthly Construction Cost Index survey results showed price stability in November 2025 compared with October 2025. SPA
TT

GASTAT: Construction Costs in Saudi Arabia Rose 1% in November

The monthly Construction Cost Index survey results showed price stability in November 2025 compared with October 2025. SPA
The monthly Construction Cost Index survey results showed price stability in November 2025 compared with October 2025. SPA

The Construction Cost Index in Saudi Arabia rose 1% in November 2025 compared with the same month last year, driven by equal 1% increases in both residential and non-residential construction costs, according to data released by the Kingdom’s General Authority for Statistics (GASTAT).

The monthly Construction Cost Index survey results showed price stability in November 2025 compared with October 2025.

The Construction Cost Index bulletin is part of GASTAT’s ongoing efforts to develop statistical products for vital sectors and provide a reliable and effective reference with accurate estimates to support decision-making by contractors, real estate developers, and relevant entities.

These efforts contribute to drawing a clear roadmap for residential and non-residential construction projects in the building and construction sector.