Red Sea Security Situation and Rate (Update)
Carriers continue to avoid the Red Sea routings due to increased security incidents. Most carriers are routing around Cape of Good Hope and have adjusted their schedules accordingly. Some carriers have implemented shuttle services connecting Red Sea cargo via Jeddah, SA. This will connect the Red Sea market with the EU, NA and Latin America.
They are aware this doesn’t cover all Red Sea cargo but they continue to work through this fluid situation to ensure service and safety.
Please take note that this situation is having a ripple effect throughout the shipping industry. Surging fuel and operational costs, coupled with capacity reduction is wreaking havoc on global traffic rates. Carriers are implementing Emergency Operating Surcharges and adjusting Bunker Fuel due to longer voyage travel times.
With Chinese New Year on the horizon, Asia-Pac/Asia-EU rates are surging, with the carriers implementing GRI and PSS to cover the additional transport disruption costs.
Background:
Following the near-miss incident involving ships on Thursday 14 December 2023 and yet another attack on a container vessel on Friday 15 December 2023, carriers are avoiding the Suez Canal and the Red Sea until further notice. They will begin routing ships around the Cape of Good Hope, pass through the Bab al-Mandab Strait or wait in a safe location until the situation is deemed safe for crews, ships and cargoes.
Recently, a Maersk vessel was attacked on Saturday December 30, 2023, escalating the security threat in the region. Maersk, subsequently, has paused all transport in the region until further notice.
We are monitoring the situation constantly. We expect to share more information about these events and any others that may affect your operations.
We are committed to ensuring the stability of our customers’ supply chains, and we are working closely with our logistics teams and taking the necessary steps to minimize the impact on our customers.
We understand the potential impact this will have on your supply chain, but please know that all decisions are being carefully considered by our teams and only implemented to ensure the safety of the entire supply chain.
We appreciate your patience and understanding as we work through this difficult situation. If you have any questions or wish to discuss options, please don’t hesitate to reach out to your local South East World Wide (Chicago) Ltd Sales Representative.