INDIA-USA Shipping Challenges Continue Amid Red Sea Crisis

As reported by shippers, carriers and forwarders, vessel space from India to USA is tightening and the number of blank sailings have been increasing due to the unsettled situation in the Red Sea. Confirmed bookings are missing connection sailings due to limited space availability, causing some backlog concerns at regional ports. Weekly sailings from Mundra and Nhava Sheva are seeing about 25% rollovers.

Planning is considerably problematic for carriers and shippers seeing longer delays, 10-15 days, due to the longer transit times around the Cape of Good Hope.

Freight rates continue to rise on this segment. Carriers attempting to make up for additional operational costs, reduced sailings and high demand, are imposing multiple GRI’s, some in the neighborhood of $1000/Container, carrier dependent.

This comes on the heels of COSCO and ONE, predicting major losses in 2023, others sure to follow. Siting ‘softening rates’ and ‘excess capacity’ , as the reason for the loss. Most carriers blame low consumer demand due to slow market recovery, adding with supply and demand outlook and freight market conditions remaining “extremely uncertain.” 

We are monitoring the situation continuously. 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.