The Red Sea crisis: Commerce department flags rising import cost

Growing attacks on commercial shipping vessels travelling through the lower Red Sea have resulted in a combined impact of higher freight costs, insurance premiums and longer transit times, the commerce department said on Monday, cautioning that it can make imported goods significantly more expensive.

However, as of now, container availability has not been seen as an issue as adequate empties are available.

The Red Sea strait is vital for 30 per cent of global container traffic and 12 per cent of global trade. The cost of freight and insurance has risen due to ships being compelled to avoid the Red