ALERTS & ​ADVISORIES

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
February 16, 2024
Ships docked at the port during breathtaking sunset.
Ships docked at the port during breathtaking sunset.

Completing nine weeks of the Red Sea crisis, a tentative new normal emerges. While the timeline for re-routing through the region remains unclear, ocean carriers have largely adapted their schedules and ports of call, suggesting fewer operational disruptions on both primary and backhaul routes going forward. However, experts urge caution, emphasizing the inherent volatility of the situation and the potential for future flare-ups. 

Industry Insights, Facts & Market Developments 

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

  • Leading analysts predict a prolonged Red Sea closure, which could last through 2024. Shippers should remain vigilant for further supply/demand disruptions. The only remaining carriers who traverse the Red Sea are smaller Asian carriers. 
  • The Houthi claim to be attacking only US, UK, and Israeli ships, but experts state this is rather subjective, and all ships are at risk in the Red Sea. 
  • US CENTCOM successfully intercepted missiles launched by Houthis in the past week, as well as launching several counterattacks.  
  • All major carriers continue to go around the Cape with extended Transit time and higher costs to follow. The supply chain has started to adjust to the new reality.  
  • More information has come out on EU Operation Aspides, which is set to last for one year, be purely defensive in nature with no attacks on Yemeni soil, and based on Greece.  
  • Hapag Lloyd is reducing their Operational Recovery Surcharge from US East and Gulf Coast to Asia effective February 16th, today, which was initially implemented February 5th only. While back haul related, a sign of relief. 
  • Drewry’s WCI, released yesterday, indicated that from Asia to Europe and the Mediterranean, it continued to decline, but the pace of decline slowed compared to the past week.  
  • Backhaul rates from Europe and the Mediterranean to Asia seem to be catching up, reacting to the crisis. Xeneta reported a 68% rise in North Europe to Asia and a 45% increase in Mediterranean rates since December 31st, 2023.  

Our Commitment 

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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About JAS  

JAS, 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 privately-owned logistics companies, JAS is committed to creating opportunities for our communities, customers, and colleagues to thrive. Together. 

About Naqel Express by SPL 

NAQEL Express by SPL has been operating in the MENA region since 2005 and is now a proud member of the Saudi Post family. With a presence in 16 countries, it has established itself as a formidable force in logistics. With its unrivaled distribution network and robust fleet, NAQEL seamlessly connects you with even the most remote corners of Saudi Arabia. 

NAQEL provides tailored solutions and services such as speedy e-commerce and courier delivery, efficient road transport, smart warehousing and order fulfillment, global air and sea freight forwarding, seamless supply chain solutions, project management, 3PL services, and easy customs clearance. Committed to delivering innovative and sustainable solutions with a focus on environmental responsibility, NAQEL strives to lead the logistics industry towards a greener and more sustainable future. 

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