DP World says sea freight prices could fall 20% if Red Sea attacks curbed

Sea Freight Prices in the Red Sea Set to Drop Following Improved Shipping Routes Sea freight prices in the Red Sea are expected to drop significantly as shipping routes return to normal. DP World's Deputy CEO, Yuvraj Narayan, stated that freight costs could decrease by 20-25% over the next two to three months. He shared this on the sidelines of the World Economic Forum in Davos, Switzerland. Impact of Houthi Ceasefire Announcement on Freight Prices The decline in prices comes as Yemen's Houthis announced they will limit attacks to Israel-linked ships. They may halt all assaults if the Gaza ceasefire is fully implemented. The freight price reduction in the Red Sea could benefit global shipping, with shorter routes via the Red Sea and Suez Canal becoming viable again. Houthi Attacks and Their Effect on Shipping Costs Since November 2023, the Iran-backed Houthis have carried out over 100 attacks on commercial ships. This includes sinking two vessels, seizing one, and killing at least four seafarers. Many shipping companies