[FFW News] Another Houthi flashpoint

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📈 BY THE NUMBERS: Important numbers impacting freight and logistics

⛽ Diesel: $3.867 gal (🔼from $3.838 last week) - EIA

✈️ Air Cargo Index (Dec ‘23): 185.7 (🔼from 173.6 in Nov ‘23) - FRED

🚢 Global Container Index: $3,411 (🔼from $3,093 on 1/19) - Freightos

Logistics News for Feb. 1, 2024

⚔️ Houthi Missile Near Miss With US Warship: Another cruise missile was launched by Iranian-backed Houthi militants into the Red Sea earlier this week. The cruise missile came within a mile of the USS Gravely before it was shot down. US and UK strikes on Houthi positions have not yet addressed the Red Sea threat, and most shipping continues to divert around the Cape of Good Hope. Container rates remain spiked, and these are likely to show up in supply chain mayhem and up to ½ point global inflation in coming months.

When you Follow us on X, you will get our daily “Red Sea ADHD” updates on the Houthi situation, which are happening too fast for email.

👀 Southern US border crisis: The state of Texas announced that it will defy a U.S. Supreme Court order to take down barriers and anti-migration obstacles. Conservative states have promised support, and a convoy of anti-immigration activists are en route to protest. The flashpoint for this dispute is a park in Eagle Pass, TX, located about 90 miles northwest of the critical US-Mexico trade hub of Laredo.

🇪🇬 Egypt Preparing to Hit Houthis?: Suez Canal Authority Chairman Osama Rabie told Arab News that global shipping lines passing through the Suez have assurances that the channel’s operator will mitigate current conditions as rising tensions in the Red Sea continue to impact Cairo’s cash cow.

🤝  Maersk and Hapag-Lloyd Team Up, Leading THEAlliance High and Dry: Hapag leaves THEAlliance (smallest of the container cartels alliances) to join with Maersk in what will become the second largest container alliance. (Sal Mercogliono viaYoutube)

☀️ El- Nino Wreaking Havoc on Panama Canal: Unusually dry conditions lowered water levels and backed up traffic at another choke point. Daily traffic through the canal is down 40% y/y. (NYTimes)

🛫Red Sea Crisis Driving Air Freight Volumes: Air freight volumes are also being impacted by the ongoing Red Sea crisis. Rates have climbed for the first time in seven weeks ahead of the Lunar New Year as shippers look for alternatives, including costlier air cargo space and longer ocean transits.

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