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Update: Red Sea shipping issues
2023-12-22
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Update: Red Sea shipping issuesWith a comprehensive network of international container shipping services, including LCL and FCL import and export operations, the U-Freight Group reports that all major shipping lines have now taken the decision to re-route vessels via the Cape of Good Hope instead of traversing the Red Sea and Gulf of Aden, impacting routes passing through the Suez Canal, due to the current security risk prompted by recent Houthi rebel attacks.The diversion around the Cape of Good Hope will increase transit times by at least 7-10 days. However, vessels that were already heading for the Suez Canal and subsequently held prior to being turned around, will face additional delays.Emergency surchargesOperational adjustments to ensure safety of crew, vessel and cargo has resulted in carriers imposing emergency surcharges, some of which have taken immediate effect.UFL is committed to helping clients manage this difficult situation and mitigate where possible additional costs incurred. Our oceanfreight teams globally will endeavour to keep in close contact with all clients to provide up-dates on specific movements.Port disruption and equipment shortagesEmpty container shortages and port congestion are expected following the delays and diversions in the Red Sea, which could impact supply chains as we head towards the Chinese New Year. Where possible, we would advise shippers to incorporate additional lead time into inventory planning, as well as consider alternate modes for time-sensitive shipments, such as the overland rail service that we offer from China to Europe.The U-Freight Group's ocean freight teams will continue to monitor the disruption in our ongoing attempts to reduce any disruption to shipments.For more information about the U-Freight Group's global ocean freight forwarding and logistics services, please contact your local U-Freight office.