Red Sea Shipping Risks Continue to Elevate Freight and Insurance Costs

World Bank / EIA · Jul 05, 2026 00:00

Persistent security threats in the Red Sea continue to force many oil and LNG tankers to reroute around the Cape of Good Hope, adding 10-14 days to transit times. This ongoing disruption has led to significantly higher insurance premiums and freight costs for Asian-bound cargoes, impacting landed commodity prices.