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Over the last weeks, several attacks led by Houthi rebels occurred in the Red Sea leading the main carriers to suspend most voyages through the Suez Canal. These decisions were accompanied the imposition of surcharges, leading to a steep hike on freight rates between Asia and Europe. More operational difficulties are expected to arise in the coming days and weeks.

According to MDS Transmodal, in the three-week period from December 18 to January 7, the rerouting of container shipping services led to a near 2 million TEU drop in fleet capacity heading through the Suez Canal over the new year, equivalent to a 60% drop in traffic compared to last year. With only CMA CGM among the larger lines still sending ships via the Suez, and only a handful of smaller carriers following suit, the current rerouting trend is expected to increase in the coming weeks with the Red Sea region still volatile.

The rerouting of West-bound container vessels via the Cape of Good Hope led has to increased delays, which in return may create operational difficulties such as increased congestion in Northern European ports and a lack of equipment on exports. These difficulties add to the sharp increase in freight rates, first with the introduction of surcharges by most carriers followed by general rate increase which may continue at least until Chinese New Year.

The extra transit times of an average 10 days resulting from the Suez Canal diversions are serious problem for many shippers. Also, all westbound voyages from Asia are reported to be full until Chinese New Year, on 10 February, with some carriers indicating they are fully booked until the end of February.

CLECAT recognises the exceptional situation faced by maritime carriers and considers that everything should be done to ensure the safety of seafarers, vessels and their cargo. Freight forwarders remain pivotal in orchestrating transportation logistics throughout the supply chain to identify the most effective and sustainable solutions amidst the ongoing challenges.

CLECAT however calls on ocean carriers to exercise care in the imposition of surcharges and freight hikes, to ensure it only covers the extra costs incurred by the exceptional situation, and that they are applied on affected sea routes. This caution is essential for preserving the efficiency of global supply chains and preventing incidents like the recent maritime crisis.

Source: Lloyd’s list, The Loadstar