Frankfurt/Athens/London/Los Angeles: Germany’s Hapag-Lloyd and Hong Kong’s OOCL said on Thursday (December 21) they would avoid the Red Sea after attacks on ships by Yemen’s Houthis disrupted global trade and prompted the creation of a naval task force. A shipping company recently announced.
Hostilities have prevented shipping through the Suez Canal, which handles about 12% of global trade. The Suez Canal is paramount to moving goods between Asia and Europe, but global logistics executives say sending ships along alternative routes could disrupt global supply chains, leading to port backlogs and sudden shipments, containers, etc. He warned that this could lead to equipment shortages. Wrong place.
Matthew Burgess, vice president of global marine services at CH Robinson Worldwide, said: “The situation remains fluid and conditions can change rapidly, so to keep supply chains moving, It is important to have a contingency plan that includes Plans A, B, and C.”
Hapag-Lloyd has announced it will divert 25 ships from major waterways by the end of the year as the disruption drives up freight rates and shipping stocks. Avoiding the Red Sea and Suez Canal means taking a much longer route around Africa.
The Iran-aligned Houthis, who control much of Yemen, have been attacking ships passing through the Bab al-Mandab Strait at the southern tip of the Red Sea for weeks, claiming it was a response to Israel’s war in Gaza. ing.
Meanwhile, traders are scrambling to find workarounds such as flights to get consumer goods to retailers, adding about 10 to 14 extra days to sailing around Africa.
Hong Kong-based container group OOCL told Reuters in a statement on Thursday: “To date, we have instructed vessels operated by OOCL to reroute or cease sailing to the Red Sea.” told Reuters in a statement acknowledging the suspension of sailings for the first time.
Christian Soule, executive vice president of shipping at Unique Logistics, said that when a crisis occurs at one point in the supply chain, ships are held up, port schedules are disrupted, and cascading delays occur throughout the system. He said it was possible.
Due to the disruption in the Red Sea, container shipping costs from China to the Mediterranean rose by 44% in December alone, reaching US$2,413 (RM11,233), Freitos said earlier this week.
If the conflict continues or escalates, so-called “spot” prices for uncontracted cargo “could double or triple from current levels,” Suhr said.
Global furniture retailer IKEA is among shippers warning of possible cargo delays and product shortages. Elsewhere, Finnish elevator maker Kohn estimated that some shipments could be delayed by two to three weeks.
Products shipped in containers, such as apparel, toys and food, are most at risk, but other products are also affected.
U.S. soybean exporters, who have already switched shipments from the drought-stricken Panama Canal to the Suez Canal, are seeking access to ships that go directly to China and other Asian markets to avoid significantly longer delays. I’m considering whether to start putting crops on trains bound for the West Coast. Alternately sail through South America or Africa.
“There’s a whole range of imperfect options out there,” said Mike Steenhoek, executive director of the Soybean Transport Coalition.
Analysts warned that some retailers could start running out of some goods by February, but exporters in various regions have More and more companies are looking for supply chain resiliency by purchasing goods.
“We have a lot of experience living through COVID-19,” Suhr said. The company’s customers also include retailers.
Greece said Thursday it would send a naval frigate to the area to help protect ships as part of a multilateral coalition announced by the United States to ensure safe navigation of the waterway.
Greek shipowners control about 20% of the world’s commercial ships in terms of carrying capacity.
But some of the countries the United States has said will join the coalition have indicated they do not plan to send significant naval forces to the region, and Saudi Arabia, which borders the Red Sea, is not listed as a member.
Meanwhile, Houthi leaders have threatened to expand their attacks to include U.S. naval vessels, raising the possibility of a broader conflict around the Bab al-Mandab strait.
A Hapag-Lloyd spokesperson said one of the company’s ships, Al Jasrawas attacked near Yemen on December 15 on its way to Singapore, and the company plans to make further decisions on the route by the end of the year.
The spokesperson said he did not have detailed information about the U.S.-led naval coalition aimed at protecting shipping in the Red Sea.
Maritime transport executives said stabilization of the vital waterway was essential to fully restart shipping traffic.
Its influence is being felt directly in Israel. OCCL announced on Saturday that it would stop accepting cargo to and from Israel until further notice “due to operational issues.” –Reuters
