Industry Insight
Client Advisory: Red Sea vessel attacks - Suez Canal Update
Crane Worldwide Logistics is keeping in close discussions with our core carriers relating to the ongoing turbulence in the Red Sea.
- Newsroom
- Article
- Feb 11, 2024
- By Crane Worldwide Logistics
Crane Worldwide Logistics is keeping in close discussions with our core carriers relating to the ongoing turbulence in the Red Sea.
Feedback is that the security situation in the Red Sea continues to deteriate, despite ongoing efforts to restrict the actions of the Houthi rebels.
Furthermore, the situation remains volatile as air strikes in the region began, prompting major owners in all sectors to avoid the region.
The majority of carriers are awaiting clear direction that the Red Sea sailings will have a safe passage, several stating that there is no expectation for routings to change in the next few months according to our discussions.
Latest Information on operations in Red Sea
Carriers continue to accept bookings to Europe and the Mediterranean, however, shipments to the Red Seaare being declined.
Nearly all the carriers have advised that shipments will move the Cape of Good Hope. Those who have not provided the alternative routing confirm their operations are paused in the Red Sea.
The scheduled and expected GRI’s effective from January 1st on the Asia to Europe trade continue to be announced.
Crane Worldwide has not formally been advised of any additional surcharges to go via the Cape of Good Hope, nor any War or Emergency Risk Surcharges at this time.
It is estimated that as much as 1.7M containership capacity could be required to cover the Red Sea rerouting.
Please be advised that If the current situation continues for a prolonged period, we could expecta shortage of equipment in Asiaas the round trip increases significantly.
The situation continues to escalate, on Sunday one USS Warship shot down 14 drones with no ships damaged.
If you have any questions, please contact your local Crane Worldwide representative or reach outhereto discuss alternative solutions.
Carrier operations paused in Red Sea passage
After a number of container vessels have come under attack, Maersk and Hapag-Lloyd have paused all Red Sea passages. The attacks are being made by Houti rebels in Yemen in protest to the war in Israel and Gaza. The attacks are occurring in the Straits of Bab el-Mandeb, between the Gulf of Aden and the Red Sea. Whilst at first it was believed that only vessels with connection to Israel were being targeted, Houti rebels have since advised thatallvessels are targets. An MSC vessel was hit by a missile with little damage, Maersk has experienced a near miss. A Hapag Lloyd vessel has also been struck, resulting in a container being thrown overboard and deck fire, no crew members were injured. A Maersk vessel travelling south bound through the Red Sea has turned around. If the channel is closed it will force carriers to divert vessels around the Cape of Good Hope, addingapproximately 10 days in additional transit and cost.The Red Sea channel represents 12% of global trade. If the passage is to close, the impact to cargo to and from Asia and Europe will be significant. Carriers are monitoring the situation closely and working with Naval forces on the scene. At this time there has been no news of an ERS (Emergency Risk Surcharge) and / or a WRS (War Risk Surcharge), however it can be expected. Crane Worldwide is monitoring the situation closely and identifying shipments on the water and their current position. We will provide alternative ocean freight solutions and are offeringair freight servicesfor urgent shipments.The situation will be updated on a daily basis.You can view the latest incidents as featured by UKMTO, United Kingdom Maritime Trade Operationshere
If you have any questions, please contact your local Crane Worldwide representative or reach outhereto discuss alternative solutions.
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