ALERTS & ​ADVISORIES

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
January 26, 2024
Port at Sunset
Port at Sunset

Current Situation: 

Six weeks into the crisis in the Red Sea, the situation remains critical and extremely dynamic. The containerized ocean carrier community continues to reroute, with very few exceptions, their vessels around the Cape of Good Hope. The situation and the future direction of this conflict remain dynamic.

  • Since our last update, no attacks were noted until Tuesday this week when two US flag vessels came under attack, which then turned around discontinuing their passage.  
  • This was followed by a Liberian flagged bulk carrier, which was attacked on Wednesday.  
  • We continue to witness that the frequency of the attack has no pattern.  
  • According to media outlets, the Iranian Revolutionary Guard, as well as Hezbollah forces, are on the ground in Yemen, working jointly with the Houthis, directing attacks on shipping in the Red Sea. 
  • US CENTCOM reported that daily air strikes have taken place on Houthi inland targets in Yemen. 

Key Facts & Market Developments: 

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

  • Carrier Hapag Lloyd announced two days ago that, given the ongoing dangerous situation and security concerns, they will divert all vessels until further notice. 
  • The 2M alliance announced yesterday that network changes for Asia – Europa and Asia – Transpacific Services are being announced.  
  • Maersk Line Limited announced today that transit 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, therefore, may continue to transit on the same vessels.
  • On the Asia-Europe trade market rates only increased a marginal 1% this past week. Industry experts have pointed out that the rate difference between destinations in North Europe and the Mediterranean is at almost USD 1500.00 / 40’ container. 
  • Backhaul rates to Asia from North Europe should equally be monitored closely as benchmarking platforms report +130% increases in rates compared to pre-crisis levels.  

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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