Attacks on ships passing through the Red Sea have increased the demand for shipping, transporting goods from manufactured items to oil and other commodities.
Since the increase in attacks on shipping ships on December 12, the combined market value of the largest shipping companies traded in financial markets has increased by about $22 billion, according to a report published by Bloomberg.
According to the Solactive Global Shipping Index, the combined market value of maritime shipping companies rose to about $190 billion on Wednesday, compared to $166.2 billion before last December 12.
The rise in the market value is due to shipping companies and vessels opting to avoid high-risk areas, causing insurance costs to increase.
According to a Bloomberg report, shipping companies are now avoiding the Red Sea and instead choosing to sail around Africa to deliver their shipments.
When cargo ships travel longer distances, it leads to more extended periods of operation and disruptions in maritime transport traffic due to delayed arrivals.
On Wednesday, logistics giant Keuhne+Nagel announced that 103 container ships will sail around Africa, with more expected to follow, according to a report.
