December 20th 2024
Last updates about Suez Canal navigation:
In response to recent attacks against commercial shipping in the Gulf of Aden/Southern Red Sea, several carriers have announced that their ships will no longer transit through the Bab Al-Mandab Strait and instead divert their ships pass the Cape of Good Hope.
As of the time of this announcement, they include:
- Hapag Lloyd
- Yang Ming
- Hyundai Merchant Marine
Other carriers such as OOCL, COSCO, Evergreen have stopped accepting Israeli and/or Red Sea bookings, therefore we anticipate more carriers will stop transiting through the Red Sea & Suez Canal.
We will update you as the situation develop.
Together with the congestion at the Panama Canal brought on by drought, trade lanes that are directly impacted are all Origin Ports to the following regions:
- Red Sea
- Mediterranean & Black Sea
- North Europe
- US East Coast
These disruptions will mean:
- –Transit time to the Mediterranean & Black Sea will be extended by 15 – 20 days
- Transit time to Northern Europe will be extended by around 15 days
- Equipment availability at origins will be under pressure as transit time on the return leg will also be extended
- Increase in freight rates, as well as an increase in bunker (due to longer transit) and insurance cost
- – Carriers are planning PSS wef 1 Jan and GRI wef 1 Jan and 15 Jan
- Current congestion at the Panama Canal will temporarily worsen with increase in the number of transits during Lunar New Year
Kindly be advised that the impact of this situation will certainly bring significant freight rate increases during Q1 2024 as well as lack of equipment at the port of loading and general pressure on all the logistic supply chain.
For more information, you can contact
Ocean Department Export Manager
Kerry Logistics | Tuvia Italia