The Red Sea is a vital waterway for global trade, 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 occurred that have disrupted the 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.
These incidents have increased the risk of shipping in the region, and we have seen action taken by most of the largest container carriers (VOCC’s) in the world to mitigate the risk for their employees and vessels operating in these waters.
Below is a recap of the current situation as announced by carriers as of today; however, the situation is very fluid and continues to evolve.
This conflict will have massive implications on global trade, and all shippers should expect serious 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 the 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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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:
Mitigating Future Disruptions
To minimize risks, businesses should consider these strategies:
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.
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.
Atlanta, USA – November 25, 2024 – JAS Worldwide, a global leader in logistics and supply chain solutions, headquartered in Atlanta, USA, is excited to announce its collaboration with ALPHA Augmented Services, a technology innovator in logistics optimization, headquartered in Zug, Switzerland. This partnership represents one of the many steps JAS is taking to integrate AI-driven solutions into a broader strategy for delivering sustainable, efficient, and innovative logistics solutions.
As part of its innovation roadmap, JAS will incorporate ALPHA’s advanced AI technology to explore new ways of optimizing air, ocean, and road freight logistics. The collaboration aligns with JAS’s commitment to leverage emerging technologies to support its customers’ goals for cost efficiency and carbon footprint reduction, all without requiring significant capital investment.
“This partnership with ALPHA reflects our ongoing strategy to integrate innovative tools with technology that complement JAS’s broader vision for sustainable and intelligent logistics solutions, said Andrea Goeman, SVP QHSE & Sustainability at JAS Worldwide. “ALPHA’s optimization capabilities are a valuable addition to our portfolio, offering our customers enhanced efficiency, operational savings, and a reduced carbon footprint for their shipments.”
JAS remains dedicated to exploring technologies like ALPHA’s to advance its mission of creating smarter, greener logistics solutions. This partnership underscores JAS’s leadership in driving sustainability and innovation while maintaining its focus on a diversified approach to forward-thinking logistics solutions.
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, USA and supported by 7,000+ team members in more than 100 countries, it builds innovative and sustainable solutions that focus on customer needs and a better future for all. At the heart of JAS's success is its people who deliver customer value. As one of the largest and fastest growing family-owned logistics companies, JAS is committed to creating opportunities for our communities, customers, and colleagues to thrive. Together.
About ALPHA Augmented Services
Headquartered in Zug, Switzerland, ALPHA Augmented Services specializes in logistics optimization, helping businesses streamline their supply chains for greater efficiency and reduced environmental impact. ALPHA’s technology empowers companies to achieve operational excellence in logistics.
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