Dear valued customer,
We would like to update you further on the situation in the Red Sea.
Current situation
In the last two weeks, several attempts have been made to attack vessels transiting through the Red Sea, most recently, the Maersk Hangzhou on December 30.
We can assume that we will continue to face delays and disruptions in the coming weeks as many carriers continue to reroute their ships around the Cape of Good Hope. The situation is also challenging because other carriers continue to sail through the Red Sea (some of these are being escorted) and it seems that these decisions are not only carrier specific, but also service specific or are decided by carriers per vessel based on the immediate circumstances.
Impact to transit times
Sailing around the Cape of Good Hope takes significantly longer than sailing through the Suez Canal. Although the additional transit time depends on many factors, it is expected to be at least two to three weeks for rerouted ships. For vessels still transiting via the Red Sea, delays can also be expected as they may be placed in holding patterns or rerouted at the last minute.
Impact to shipping costs
With the additional constraints, transit times and fuel requirements to sail around the Cape of Good Hope, spot markets have increased significantly over the last two weeks. Furthermore, almost all carriers have issued so called “Contingency Surcharges” to for the increased costs. We expect this trend to continue considering there has been no improvement in this conflict. Furthermore, increased demand leading up to Chinese New Year is further expected to push shipping rates up.
Will my shipment be impacted?
Unfortunately, we can assume that all cargo originating from APAC and the Middle East bound for Europe is likely to be impacted. Vice versa, all cargo moving from Europe bound for APAC and the Middle East will be impacted. Other services that might be affected are those that were originally transiting through the Panama Canal and were rerouted via the Suez Canal due to the drought issues in Panama. For more detailed information about your shipment, please reach out to your Stolt Tank Containers representative.