The cost of ships traveling farther to avoid potential attacks in the Red Sea is more logistical than inflationary, U.S. energy envoy Amos Hochstein said on Sunday, adding that the United States was continuing to mitigate the risks of Houthi attacks in the region.
“There’s clearly a sentiment issue where prices have gone up a little bit,” he told CBS New in an interview, noting ships do have to travel farther. “It’s more logistics cost than it is an actual cost. The costs do go up. But … the inflationary impacts are relatively muted.”
Source: Reuters (Reporting by Susan Heavey in Washington, Editing by Mathew Lewis)