Swan Atlantic is attacked by drones and ballistic missiles launched from Houthi-controlled areas on December 18. (Photo: Vessel Finder)

Freightos, an international shipping and payment company, said that since December 19, the shipping cost for a container from China to the Mediterranean has increased 44% to 2,413 USD. It was only 1,371 USD at the beginning of the year.

Shipping costs have increased as well as shipping time as transport companies have changed their itineraries. Experts said that navigating to the Cape of Good Hope in Southern Africa instead of going through the Suez Canal and the Red Sea will increase the total transportation time from Asia to Northern Europe and the Eastern Mediterranean by about 10 more days and fuel cost will increase an additional 1 million USD.

Project44, a supply chain research company, says that if transportation continues to be delayed, the inventories of most large EU manufacturers and consumer corporations will run out by next February.

The strikes which are believed to be conducted by Houthi forces in Yemen, have targeted cargo ships in the Red Sea.

In an effort to prevent further attacks, the US and partner countries on Monday, established a security coalition of 10 countries to protect commercial ships. The alliance includes the US, the UK, Bahrain, Canada, France, Italy, the Netherlands, Norway, Seychelles and Spain.