Insurers double premiums for shippers using Red Sea

A container ship crosses the Gulf of Suez towards the Red Sea in Suez, Egypt.

Photo credit: Reuters

Traders in East Africa are bracing for more delays in the delivery of cargo after the Yemeni rebel group, the Houthis, this week threatened to escalate attacks on vessels that deal with Israel or fly its flag.

This will hit tea exporters hard, as they will have to bear increased costs and delays in cargo delivery and the collection of empty containers at Kenyan and Tanzanian ports due to longer shipping routes.