It has been going on for more than a month now. The Houthies’ attacks on mainly container ships in the Red Sea. This situation has created a significant disruption in the global supply chain and it remains to be seen when this will stop. Paired with the upcoming Chinese New Year, which normally already involves many blank sailings, the logistics world faces a challenge in the coming period.
There is also other big news within the shipping industry! More on that in this market update.
CAROZ’s eye opener:
The Red Sea crisis is causing big problems for global shipping. Ships are taking significantly longer routes, making things slower and the rates rise. The shortage of containers, especially before the Chinese New Year, is making it even tougher during the busiest time. We will see what it will do after Chinese New Year, but it is not expected to improve a lot overnight.
This isn’t just affecting specific routes; it’s making shipping more expensive everywhere. Other trade lanes all over the world are experiencing the consequence from the Red Sea situation. Also, in Europe, companies are upset about extra charges by shipping lines, but there’s not much legal ground to challenge them unfortunately.
Maersk and Hapag-Lloyd are teaming up to make shipping more reliable, they say. This partnership is a group effort to make international trade smoother. We will see what time will bring us and whether they can deliver on their promises.
Want to know more?
Each monthly update we will highlight the developments within the Ocean freight market including the following topics:
- Trending topic: Red Sea situation causes pressure on all trade lanes
- Rail & Air | Expectations into 2024
- Space & rate developments
- Port developments & congestion
- Schedule reliability
- TEU per operator
- How to mitigate the risks
