Shipping Crisis Drives Up Costs, Forces Firms to Reroute Goods Ahead of New Year Holiday
• Shipping prices between Europe and China have soared amid crisis, hurting China's exports and pushing firms to find backup plans before Lunar New Year • Attacks in vital Red Sea shipping lane have forced some firms to suspend Suez Canal transits, adding risks to China's investments in region • Alternatives like rail and air freight have limits in capacity and value; rail through Russia now seen as high-risk • Companies adopting contingency plans like new sea/air routes, though with longer transit times • Prices and delays likely to persist in near term though situation remains fluid; further escalation could spur more disruption