ALERTS & ​ADVISORIES

Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
December 18, 2023
Container Ship
Container Ship

Current Situation

The Red Sea is a vital global trade waterway connecting Asia, Europe, and Africa. However, it is also a hotspot for geopolitical tensions, piracy, and armed attacks. In the past few weeks, several incidents have disrupted maritime traffic and raised security concerns in the area. This is claimed to be a consequence of the Israel / Palestine conflict, which sees attacks on Commercial vessels thought to be headed for Israel.

  • At the beginning of December, several attacks happened on both Navy vessels and commercial vessels in the Red Sea. This has evolved into targeted attacks on commercial Container carriers in the last week.
  • On December 14th, Maersk Gibraltar, a Hong Kong-flagged Container vessel owned by Maersk, was involved in a near-miss missile attack in the Bab al-Mandab strait in the Red Sea
  • On December 15th, Al Jasrah, a Liberian-flagged Container vessel owned by Hapag Lloyd, was attacked and hit by a missile fired from Yemen in the Bab Al-Mandab strait. The vessel sustained damage on the port side, and at least one container fell overboard. No crew was reported injured in this incident.
  • On December 15th, the MSC Alanya, a Liberian-flagged Container vessel owned by Mediterranean Shipping Company, was also involved in a near-miss missile attack.
  • On December 15th, the MSC Palatium III, a Liberian-flagged Container vessel, sub chartered to Messina Line, was struck by a missile attack, causing limited fire damage. All crew members are reported safe, and the vessel has been removed from service.

These incidents have increased the risk of shipping in the region, and we have seen action taken by most of the world's largest container carriers (VOCCs) to mitigate the risk for their employees and vessels operating in these waters.

Carrier Responses

Below is a recap of the current situation as announced by carriers as of today; however, the situation is very fluid and can change quickly:

  • Maersk announced on Friday, December 15th, that it would reroute some of its vessels scheduled to transit the Suez Canal to now go via the Cape of Good Hope in South Africa, adding several days to the transit time.
  • CMA CGM announced on Sunday, December 17th, that it would reroute some of its vessels scheduled to transit the Suez Canal to now go via the Cape of Good Hope in South Africa, adding several days to the transit time.
  • HAPAG-LLOYD announced on Friday, December 15th, that it suspended all sailings through the Red Sea until further notice.
  • MSC announced on Sunday, December 17th, that it would reroute some of its vessels scheduled to transit the Suez Canal to now go via the Cape of Good Hope in South Africa, adding several days to the transit time.
  • Other Carriers have made similar statements about bypassing or avoiding the Red Sea and Suez Canal, Like ONE, ZIM, yang Ming, and HMM.
  • Evergreen, COSCO, and OOCL have stopped accepting cargo to Israel with immediate effect and until further notice; however, there are no statements yet on suspending service through the Red Sea.

Going Forward

This conflict will have massive implications on Global trade, and all shippers should expect severe delays, vessels out of place for weeks or months to come, and significantly increased costs on all services transiting the Red Sea. The full scope of implications is unclear, but we at JAS will do our utmost to keep you updated on the situation as it unfolds and work with all customers and partners to provide the best solutions possible.

For any questions and concerns, please contact your local JAS office.


Thank you.

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JAS Worldwide Signs SPA with International Airfreight Associates B.V. 

Atlanta, Georgia – December 23, 2024 – JAS Worldwide, a global leader in logistics and supply chain solutions, and International Airfreight Associates (IAA) B.V., a prominent provider of comprehensive Air and Ocean freight services headquartered in the Netherlands, are proud to announce the signing of a Share Purchase Agreement (SPA). This agreement marks an important step toward JAS Worldwide’s acquisition of IAA which, pending regulatory approval, is expected to be completed in the first quarter of 2025. 

“This acquisition aligns with our strategic goals and enhances our ability to provide comprehensive logistics solutions to our clients. We eagerly await the finalization of this deal and look forward to welcoming IAA’s talented air and ocean team into the JAS family,” said Marco Rebuffi, CEO of JAS Worldwide. 

“In JAS Worldwide we have found the right party to realize our growth ambitions and guarantee a pleasant working environment for our employees. By joining forces, we can also offer an even broader service to our current customers. We therefore look to the future with confidence” said Jur de Graaf, Managing Director of International Airfreight Associates. 

IAA handles multi-modal general cargo and specializes in the transportation of perishable goods, with headquarters in The Netherlands and an operation in Germany. This acquisition will strengthen JAS’s presence in key markets and increase its expertise in managing time-sensitive perishable shipments. 

The combined strengths of JAS Worldwide and IAA will drive value for customers through enhanced service offerings and a broader global network. 

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About JAS Worldwide  

JAS Worldwide, a global leader in logistics and supply chain solutions, was founded in Milan, Italy in 1978. Headquartered in Atlanta, Georgia, and supported by 7,000+ team members in more than 100 countries, it focuses on creating solutions that are innovative, sustainable, and unique to each customer's needs. At the heart of its success is its people, who are committed to delivering customer value. As a privately owned company, JAS maintains a steadfast commitment to creating opportunities for our communities, customers, and colleagues to thrive. Together. 

About International Airfreight Associates B.V. 

International Airfreight Associates B.V. is a trusted provider of airfreight logistics services with headquarters in the Netherlands and additional operations in Germany. With nearly 100 employees across four locations, including Amsterdam, Aalsmeer, Rotterdam, and Frankfurt, the company specializes in moving perishable goods and delivering tailored logistics solutions for a diverse range of clients.  

After walking away from talks in November 2024, the ILA has signaled the possibility of a renewed strike if their demands are not addressed before the January 15, 2025, deadline.

Potential for Renewed ILA Strike Over Automation Disputes

Negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) have reached a critical impasse, primarily due to disagreements over port automation. After walking away from talks in November 2024, the ILA has signaled the possibility of a renewed strike if their demands are not addressed before the January 15, 2025, deadline.

This situation follows a previous three-day strike in early October 2024, which temporarily halted operations at ports along the East and Gulf Coasts. While those ports have since resumed operations, the disruption caused widespread delays and financial strain on the U.S. economy. The recent suspension of strike action was agreed upon for 90 days, ending January 15, 2025, but with negotiations stalled, the risk of further disruption looms large.

Impact of Previous Strike Action

The October strike caused significant delays, cost overruns, and operational disruptions, including:

  • Shutdowns at 36 ports handling over half of U.S. container volume.
  • Increased fees for freight storage, detention, and other services.
  • Prolonged transit times due to vessel rerouting.
  • Downstream effects on retailers and supply chains during peak season.

Mitigating Future Disruptions

To minimize risks, businesses should consider these strategies:

  1. Divert shipments to alternate ports, such as those on the West Coast.
  2. Anticipate congestion at rerouted locations.
  3. Leverage air freight for time-sensitive cargo.
  4. Utilize intermodal solutions for inland transportation.
  5. Be prepared for increased shipping costs and fees.
  6. Stay informed and work proactively with logistics partners to reduce delays.

Guidance from JAS

JAS remains committed to supporting clients during these uncertain times. If your operations are at risk of being impacted, we strongly encourage you to reach out to your JAS representative. Our team can provide tailored solutions to mitigate disruptions, streamline supply chains, and optimize freight options. Whether through alternative routing, expedited services, or strategic planning, JAS is here to help you navigate these challenges effectively.

XL Tanks from Netherlands to Sweden: A Seamless Logistics Solution

JAS Projects recently completed a comprehensive logistics solution for Gpi Tanks XL, a company specialized in stainless steel tank construction, either on-site or at one of their flexible construction locations near a waterway, as was the case with this project. This project involved transporting large industrial tanks from Zwijndrecht, Netherlands, to Uddevalla, Sweden, where they will be used to recycle de-icing liquid for major Scandinavian airports.

The operation in Zwijndrecht required careful coordination due to tidal constraints and limited water depth. With a maximum draft of 3.5 meters at the loading berth, and the vessel entering with a 3.2-meter draft, precise planning was critical. Using an overhead crane, the tanks were loaded onto trailers before being transferred to the vessel by a mobile crane. Despite facing high winds and a two-day delay due to storms, the entire loading process was completed in just six hours.

A 700-ton mobile crane was utilized during loading to maintain a safe 33-meter radius, ensuring no pressure was placed on the jetty. The vessel, sailing with open hatch covers to accommodate the tank height, ensured smooth and secure transport to Sweden.

Upon arrival at the client’s site in Uddevalla, discharge operations were executed efficiently. The tanks were unloaded and installed onto their foundations within ten hours. JAS Projects coordinated the movement of the first tank directly to its foundation, while the second was temporarily stored on steel stools. The team also managed a last-minute client request to arrange the installation of a walkway and spiral stairs.

This project exemplifies the JAS Projects’ team ability to overcome logistical challenges and deliver customized solutions with precision. From factory to foundation, JAS provides end-to-end logistics expertise, ensuring that every project is completed on time, safely, and with the highest level of care.

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