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Severe Disruption in the Red Sea - 10th January Update

The ongoing conflict in the Red Sea is continuing to have a major impact on vessels on the East-West trade route. More shipping lines are rerouting around the southern coast of Africa, producing higher costs across the board and potential product shortages for retailers. China's largest shipping carrier Cosco announced on Monday 8th January it was also suspending trips through the region.

One of the world’s largest shipping lines, which had briefly restarted trade in the area, announced earlier this week that it was also suspending transits through the Red Sea indefinitely. The majority of container ships that would normally travel through the Suez Canal are now rerouting around the Cape of Good Hope, adding thousands of miles to their journeys.

On average, the shipping lines currently have one blank sailing per week, and this, together with the extended transit times, is also having an impact on container equipment availability.  With less sailings, and vessels taking longer on both the outward and inbound journeys, it is causing container equipment shortages in Asia.

Shipping lines are describing the issue as a case of “force majeure” because of the Red Sea attacks, which means that they are entitled to renegotiate orders.

Our worldwide team are on hand to assist and offer guidance to limit the impact to your supply chain. Please contact us at worldwide@bulletexpress.co.uk

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