ALERTS & ​ADVISORIES

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
December 29, 2023
Container Ship
Container Ship

Current Situation  

Two weeks into the crisis in the Red Sea, the situation continues to be critical and extremely dynamic. The world’s largest container carriers (VOCC’s) have chosen most of their voyages utilizing re-routing of their vessels around the Cape of Good Hope.

  • The US led 10-nation coalition of navy’s named “Operation Prosperity Guardian” continues their efforts to protect the selective voyages transiting the Suez Canal. 
  • While there have been no reported vessel attacks in the Red Sea in the last 48 hours, it is crucial to understand that the situation remains dynamic, and the risk of attacks remains high based on credible sources.  
  • In addition to the extra operational cost for carriers going around the Cape of Good Hope, this will also affect the cost of the recently advised ETS surcharges due to longer routes resulting in higher emissions. Same surcharge is valid from last non-EU port to first EU port (and vice versa) 

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 today; however, the situation is very fluid and continues to evolve.

  • The carriers continue to re-route vessels with scheduled services from the Suez Canal around the Cape of Good Hope.  
  • Maersk and CMA-CGM are currently devising plans for the gradual increase of vessels transiting the Suez Canal, carefully monitoring the security situation for safe passage.  
  • A variety of surcharges have been announced by carriers in directly and indirectly impacted trade lanes, ranging from Peak Season to Operational Recovery to Contingency Adjustment surcharges to name a few.  

Going Forward

This conflict continues to have significant implications for Global trade. The global carrier community is citing impact to the equipment pool, balance as well as a potential vessel shift to facilitate operational network needs. JAS will continue to monitor the situation and keep you appraised accordingly.  

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

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