ALERTS & ​ADVISORIES

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
February 2, 2024
Container Ship
Container Ship

Current Situation: 

Seven weeks into the crisis in the Red Sea, the situation remains critical and extremely dynamic. The containerized ocean carrier community started to announce network changes with more permanent routing changes around the Cape of Good Hope, with new transit times and an alteration of port calls. As more carriers get organized daily, we will see more of those actions being taken, which should bring a more consistent approach for the time being.  

  • Since our last update, there have been several attacks carried out by the Houthis, as well as an increased risk of piracy attacks from Somalia to add to this crisis. The latest attack occurred on February 1st on a UK flag tanker vessel, the “Marlin Luanda.”
  • The conflict has also moved into land where US troops have been attacked, which causes further instability and uncertainty in the region. So far, the attacks from US and UK armies have not slowed down the attacks by the Houthis.
  • US CENTCOM reported that daily air strikes have taken place on Houthi inland targets in Yemen, and this is expected to continue. 
  • Leading maritime security firm Ambrey advised that Maritime security concerns continue to escalate in the Red Sea, Gulf of Aden, Arabian Sea, Gulf of Oman, and the Indian Ocean, with threats growing significantly more complex and widespread.  

Key Facts & Market Developments: 

Below are some key facts and market developments surrounding the situation.

  • Carrier Hapag Lloyd, given the on going dangerous situation and current security concerns, will continue to divert all vessels until further notice.  
  • Maersk Line Limited still states that transit through the Red Sea will be suspended until further notice. 
  • Carrier CMA-CGM still shows no change to its transit policy; we highlight again the need to carefully monitor vessel sharing agreement carrier shipments that may continue to transit on the same vessels.
  • Ocean Network Express (ONE) CEO Jeremy Nixon stated earlier this week that the ongoing attacks against commercial shipping will have a material impact on transit times on the Asia – Europe and Asia – US East Coast trade lanes at least through the second quarter of 2024.  
  • Rate levels continue to be higher than pre-crisis with new charges being announced such as Equipment Imbalance surcharges, however minor softening on spot rates has also been seen in certain pockets. Rate development remains dynamic and volatile.  

Going Forward: 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

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Current updates are as follows:

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We are commited to closely monitoring developments and sharing relevant information with everyone affected.

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Karin Schöner is a native Brazilian executive recognized for her extensive expertise and leadership in the logistics industry. With a distinguished career , Karin has held key roles in sales, general management, and strategic leadership across various countries and sectors, including airlines, freight forwarding, contract logistics, and maritime operations. Prior to joining JAS Brazil, Karin served as the President for a company in the East Coast of South America, where she successfully led transformation initiatives.

Karin's track record is a testament to her exceptional capabilities in navigating complex challenges, fostering strategic partnerships, and driving innovation in supply chain management. Her deep understanding of market dynamics, regulatory frameworks, and industry best practices positions her as a leader in the logistics landscape.

Throughout her career, Karin has demonstrated a commitment to developing and empowering her teams. Her leadership philosophy emphasizes mentorship, collaboration, and continuous learning, resulting in high-performing teams that consistently exceed expectations and deliver outstanding results. Karin's passion for nurturing talent and fostering a culture of excellence aligns seamlessly with JAS's core values and vision for sustainable growth.

"Karin's unparalleled expertise, strategic acumen, and commitment to excellence make her the ideal leader to propel JAS Brazil forward. We look forward to her transformative leadership and contributions to our continued growth and success in the region," Adrian Emmenegger, Executive Vice President of JAS Americas, expressed with confidence.

Karin Schöner's appointment as Managing Director/President reinforces JAS's commitment to delivering superior logistics solutions, driving innovation, and exceeding customer expectations across Brazil and beyond.

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In Germany, China, and Panama, JAS team members joined forces to plant over 1,300 trees. In Germany's Lower Saxony, to promote ecological resilience, employees chose a diverse range of tree species that they knew would thrive in the local climate and soil conditions. Similarly, in Xiamen, China, the JAS branch organized a poignant tree planting event aimed at enriching urban greenery and enhancing the cityscape, reflecting the team's commitment to sustainable development. Meanwhile, in Panama, JAS Panama collaborated with local organizations to plant native trees within the Camino de Cruces National Park, a vital initiative aimed at restoring habitats and preserving the region's rich biodiversity. 

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Andrea Goeman, Senior Vice President of QHSE & Sustainability, commented, "From tree planting to coastal cleanups, our collective actions reflect our dedication to making a real and tangible difference in the communities we serve. Through collaboration and shared responsibility, our teams contribute to a more sustainable and resilient future for generations to come." 

As Earth Month ends, JAS Worldwide stands proud of the collective efforts made by our global team to champion environmental stewardship. From tree planting endeavors in Germany, China, and Panama to coastal cleanups in Taiwan, Netherlands, and Sweden, and conservation efforts in Brazil's Atlantic rainforest, each initiative underscores our commitment to safeguarding the planet for future generations. These efforts exemplify the spirit of collaboration and shared responsibility that defines JAS, inspiring us to continue our journey towards a more sustainable world. Together, we are paving the way for a greener, cleaner tomorrow. 

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