Despite disruptions in the Red Sea, shipping rates appear to be recovering

Experts say that although most containerships are avoiding the Red Sea due to conflict, the initially skyrocketing rates of container freight are beginning to decline.

According to Philip Damas, managing director of the British marine research company Drewry, they thought their worst was over. He continued by saying that they were now entering a second phase, which will be far cheaper than the first and easier for exporters to organize and handle.

Reporters were informed by Damas that exporters and shipping companies are gradually adjusting to extended transit times by making appropriate plans and preparations.

Drewry's World Container Index dropped 1% from the previous week to $3,786 per 40-foot container on February 8th, marking the second consecutive week of declines. After a day, the Shanghai Containerized Freight Index dropped to 2,166 points, a 2.3% decline.

The Red Sea and Suez Canal are essential for shipping commodities from Asia to Europe, but since Houthi militants in Yemen began attacking containerships in the Red Sea in November, the risks have grown.

According to Clarksons, a shipping services and data provider, since mid-December, roughly 90% of the containerships that typically navigate the sea have avoided it.

Prior to the Red Sea crisis, there wasn't much of a demand for container shipping, which experts believe will last for some time given the weak state of the world economy.