Customer update regarding shipping disruptions in the Red Sea - 10/1/24

The US military has reported that on the evening of January 9 Houthis rebels launched the most complex attack yet, including 18 attack drones, 2 anti-ship cruise missiles and one anti-ship ballistic missile. These were launched in an area where a number of merchant vessels were transiting, but thankfully the US and UK military were able to shoot down all of these attacks with no injuries or damage reported.

CMA CGM continues to route vessels through the area despite the latest wave of attacks, as well as some niche carriers.  Maersk may be making an exception for their US flagged vessels – Maersk Atlanta entered the Suez about a week ago and has had its transponder turned off ever since.

The share prices of Maersk and Hapag-Lloyd fell this week with the news that shipping lines may be looking to negotiate with the Houthis to guarantee safe passage through the Red Sea. Both companies have since denied this, and more recent reports from ShippingWatch advise that it’s smaller carriers have been exploring this approach.

Equipment

Carriers continue to experience localised shortages of equipment, but our team in China is reporting that equipment availability looks okay at the moment. The equipment situation is expected to become tighter by the end of January (week 4 and 5), as Chinese New Year approaches.

Space / Blank sailings

Vessels due to depart in the second half of January are full. Leading up to Chinese New Year, we expect capacity reductions.  The latest information we have from our teams in Asia show an average capacity reduction of 30% across all three shipping alliances as we go into February.  Based on the current instability of the schedule, we expect capacity issues through Q1.  

Anything going via a transhipment port, for example containers coming from Bangladesh, are likely to experience congestion in these ports.

Preparing for future bookings

Suppliers should be making their booking as early as possible – at least 3-4 weeks before vessel departure. We expect scheduling challenges to continue to be a problem over the next few months, so please plan ahead.

Our team is here to help. Please get in contact to discuss your specific situation or get the latest on the disruption.