Shipping firms impose extra fees as Red Sea attacks hit global trade

A transport bottleneck caused by Houthi attacks across the Red Sea has forced shipping firms to impose extra charges as they re-route ships. (AFP/File photo)
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Updated 22 December 2023
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Shipping firms impose extra fees as Red Sea attacks hit global trade

  • Chinese automaker Geely says a delivery delay to Europe will likely hurt its electric vehicle sales, the latest company to warn of disruption
  • A multinational force is being formed to patrol the Red Sea, but details have yet to emerge and shipping companies continue to avoid the area

Chinese automaker Geely says a delivery delay to Europe will likely hurt its electric vehicle sales, the latest company to warn of disruption

A multinational force is being formed to patrol the Red Sea, but details have yet to emerge and shipping companies continue to avoid the area

OSLO/PARIS, Dec 22 : 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 Houthi militant group 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 cancelations 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 traveling 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.


Belgium’s Ghent university severs ties with three Israeli institutions

Updated 4 sec ago
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Belgium’s Ghent university severs ties with three Israeli institutions

BRUSSELS: Belgium’s University of Ghent (UGent) is severing ties with three Israeli educational or research institutions which it says no longer align with UGent’s human rights policy, its rector said.
Pro-Palestinian protesters in Ghent have been protesting against Israel’s military offensive in Gaza and have been occupying parts of the university since early this month.
The university’s rector, Rik Van de Walle, said in a statement that ties were being cut with Holon Institute of Technology, MIGAL Galilee Research Institute, and the Volcani Center, which carries out agricultural research.
“We currently assess these three partners as (very) problematic according to the Ghent University human rights test, in contrast to the positive evaluation we gave these partners at the start of our collaboration,” Van de Walle said.
Partnerships with MIGAL Galilee Research Institute and the Volcani Center “were no longer desirable” due to their affiliation with Israeli ministries, an investigation by the University of Ghent found, and collaboration with the Holon Institute “was problematic” because it provided material support to the army for actions in Gaza.
A spokesperson for the university said the move would affect four projects.
The three Israeli institutions did not immediately comment.
The protesters told Belgian broadcaster VRT they welcomed the decision but regarded it as only a first step. They said they would continue their occupation of parts of the university “until UGent breaks its ties with all Israeli institutions.”
The actions mirror those of students in the United States and elsewhere in Europe, calling for an immediate permanent ceasefire and for schools to cut financial ties with companies they say are profiting from what they regard as the oppression of Palestinians.

Muslim professionals quit ‘hostile’ France in silent brain drain

Updated 51 min 29 sec ago
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Muslim professionals quit ‘hostile’ France in silent brain drain

PARIS: After being knocked back at some 50 interviews for consulting jobs in France despite his ample qualifications, Muslim business school graduate Adam packed his bags and moved to a new life in Dubai.
“I feel much better here than in France,” the 32-year-old of North African descent told AFP.
“We’re all equal. You can have a boss who’s Indian, Arab or a French person,” he said.
“My religion is more accepted.”
Highly-qualified French citizens from Muslim backgrounds, often the children of immigrants, are leaving France in a quiet brain drain, seeking a new start abroad in cities like London, New York, Montreal or Dubai, according to a new study.
The authors of “France, you love it but you leave it”, published last month, said it was difficult to estimate exactly how many.
But they found that 71 percent of more than 1,000 people who responded to their survey circulated online had left in part because of racism and discrimination.
Adam, who asked that his surname not be used, told AFP his new job in the United Arab Emirates has given him fresh perspective.
In France “you need to work twice as hard when you come from certain minorities”, he said.
He said he was “extremely grateful” for his French education and missed his friends, family and the rich cultural life of the country where he grew up.
But he said he was glad to have quit its “Islamophobia” and “systemic racism” that meant he was stopped by police for no reason.
France has long been a country of immigration, including from its former colonies in North and West Africa.
But today the descendants of Muslim immigrants who came to France seeking a better future say they have been living in an increasingly hostile environment, especially after the attacks in Paris in 2015 that killed 130 people.
They say France’s particular form of secularism, which bans all religious symbols in public schools including headscarves and long robes, seems to disproportionately focus on the attire of Muslim women.
Another French Muslim, a 33-year-old tech employee of Moroccan descent, told AFP he and his pregnant wife were planning to emigrate to “a more peaceful society” in southeast Asia.
He said he would miss France’s “sublime” cuisine and the queues outside the bakeries.
But “we’re suffocating in France”, said the business school graduate with a five-figure monthly salary.
He described wanting to leave “this ambient gloom”, in which television news channels seem to target all Muslims as scapegoats.
The tech employee, who moved to Paris after growing up in its lower-income suburbs, said he has been living in the same block of flats for two years.
“But still they ask me what I’m doing inside my building,” he said.
“It’s so humiliating.”
“This constant humiliation is even more frustrating as I contribute very honestly to this society as someone with a high income who pays a lot of taxes,” he added.

A 1978 French law bans collecting data on a person’s race, ethnicity or religion, which makes it difficult to have broad statistics on discrimination.
But a young person “perceived as black or Arab” is 20 times more likely to face an identity check than the rest of the population, France’s rights ombudsman found in 2017.
The Observatory for Inequalities says that racism is on the decline in France, with 60 percent of French people declaring they are “not at all racist”.
But still, it adds, a job candidate with a French name has a 50 percent better chance of being called by an employer than one with a North African one.
A third professional, a 30-year-old Franco-Algerian with two masters degrees from top schools, told AFP he was leaving in June for a job in Dubai because France had become “complicated”.
The investment banker, the son of an Algerian cleaner who grew up within Paris, said he enjoyed his job, but he was starting to feel he had hit a “glass ceiling”
He also said he had felt French politics shift to the right in recent years.
“The atmosphere in France has really deteriorated,” he said, alluding to some pundits equating all people of his background to extremists or troublemakers from housing estates.
“Muslims are clearly second-class citizens,” he said.
Adam, the consultant, said more privileged French Muslims emigrating was just the “tiny visible part of the iceberg”.
“When we see France today, we’re broken,” he said.


North Korea fires ballistic missile, South Korea’s military says

Updated 55 min 32 sec ago
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North Korea fires ballistic missile, South Korea’s military says

  • South Korea’s Joint Chiefs of Staff did not immediately provide details of the projectile or its trajectory
  • North Korea has launched a range of ballistic and cruise missiles as well as tactical rockets in recent months

SEOUL: North Korea fired a ballistic missile toward the sea off its east coast, South Korea’s military said on Friday.
South Korea’s Joint Chiefs of Staff did not immediately provide details of the projectile or its trajectory.
North Korea has launched a range of ballistic and cruise missiles as well as tactical rockets in recent months, describing them as part of a program to upgrade its defensive capabilities.
Earlier on Friday, the powerful sister of North Korea leader Kim Jong Un said its tactical rockets were intended solely as a deterrent against South Korean military aggression, while denying that Pyongyang was exporting the weapons.
The missile launch comes at the same time as a visit by Russian President Vladimir Putin to the Chinese northeastern city of Harbin.


French police ‘neutralized’ armed person who tried to set fire to synagogue in Rouen — Darmanin

Updated 51 min 25 sec ago
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French police ‘neutralized’ armed person who tried to set fire to synagogue in Rouen — Darmanin

  • The incident occurred early on Friday morning

PARIS: French police in Rouen shot dead an armed man who set fire to the city’s synagogue, Interior Minister Gerald Darmanin and local officials said on Friday.
The incident occurred in central Rouen, 130 kilometers northwest of Paris, early on Friday morning, Darmanin said in a post on social network X.
The attacker’s identity and motive were still unclear. He was carrying a knife and iron bar, according to local authorities.
France hosts the Olympic Summer Games in two months and recently raised its alert status to the highest level against a complex geopolitical backdrop in the Middle East and Europe’s eastern flank.
Elie Korchia, the president of France’s Consistoire Central Jewish worshippers body, said police had “avoided another anti-Semitic tragedy.”
Regional broadcaster France 3 said fire fighters were on the site. The fire had been brought under control, a Rouen city hall official said.
Rouen’s mayor said the Normandy town was ‘battered and shocked’.
The city in 2016 was rocked by an attack later claimed by the Islamic State, when a priest was killed with a knife during service in town of Saint-Étienne-du-Rouvray, in the southern part of Rouen’s urban agglomeration.


Suspected gunshots near Israeli embassy in Stockholm prompt police cordon

Updated 17 May 2024
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Suspected gunshots near Israeli embassy in Stockholm prompt police cordon

STOCKHOLM: Swedish police have detained several people and cordoned off an area in Stockholm after a patrol heard suspected gunshots, they said on Friday, with the Israeli embassy located in the closed-off area.
"A police patrol at Strandvagen in Stockholm heard bangs and suspected there had been a shooting," police said on their website, adding that the affected area lay between the capital's Djurgarden Bridge, its Nobel Park and the Oscar Church.
Several people have been detained and an investigation has been launched into a suspected serious weapons crime, they added.
"In connection with the ongoing forensic investigation, findings have been made that strengthen the suspicions that a shooting took place," police said on its website.
Reuters could not immediately reach police and the Israeli embassy for comment.
Swedish news agency TT said police declined to comment on whether there was a link between the incident and the Israeli embassy.