Due to the current situation in the Red Sea where cargo ships have been attacked on several occasions by the Houthi movement since November 19, we are providing an update on the situation.
What we currently know:
All current and future shipping going through the Suez Canal as well as shipping to/from Saudi Arabia and southern Egypt are primarily affected.
A large number of active shippings will be delayed for about two weeks because of longer transit time. This is due to taking an alternative route around the Cape of Good Hope instead of through the Suez Canal.
Many shipping companies choose to go around the Cape of Good Hope, but there are still some who hesitate, wait, or choose to go through the Suez Canal.
All shipping companies have now added a “Red Sea surcharges” due to the situation It currently only concerns routes that are affected by the situation in the Red Sea, we see no effects on either South or North America.
Given last week’s US and UK strikes against several Houthi targets, an end to this conflict may be in sight. The waterway through Suez can then be resumed and container traffic should be able to return to normal shortly afterwards.
What should you be prepared for:
- Capacity and container shortages mainly Asia-Europe, but other routes will also be affected shortly.
- Container shortages in several parts of the world as many containers are out of phase.
- A chain reaction is expected on other routes such as routes across the Atlantic.
What can you do:
- Review your purchases and calculate a longer transit time of approx. 2–3 weeks.
- Review your forecasts and make sure to have a clear dialogue about any forecast changes and book as early as possible.
For further questions, please contact:
Myriam Nyström, Commercial Director Sea Freight Solutions