After the New Year’s Holiday, we saw new reports of further attacks against a container vessel in the Red Sea, which means that it is still an unsafe situation in the area.
The Houthi rebels targeted the same container vessel twice during two days in the end of December. First, they fired some missiles and then they attempt to board the vessel. The shipping company’s security team, along with the US Navy, managed to drive them away, and fortunately no one in the crew appears to be injured.
Despite military presence in the area, it doesn’t seem to stop the rebels from attacking vessels, which lead to continuing disruption on the trade lane between Asia and Europe.
Because of the new attacks, most of the shipping companies continue to sail via the Cape of Good Hope to Northern Europe. The new route is expected to result in an extended sailing time of approximately 10-12 days to/from Asia.
Therefore, we also anticipate disruptions in the upcoming schedules (known as lost vessel), leading to reduced capacity, congested ports, and potentially a shortage of empty containers, all compounded by increased volumes. Consequently, this situation is also causing a rapid increase of the freight prices.
We continue to recommend good planning when making bookings and maintaining a close communication with your suppliers and us, so we together can try to minimize the impact as much as possible.
If you have any further questions, please feel free to contact us!
C Land Logistics.