Sea Freight: Continued Impact due to the situation in the Red Sea

Published 2024-01-18

30 days have passed since the first attack in the Red Sea, and the conflict is still ongoing. During these weeks a lot has happened, and with today’s newsletter, we aim to update you on the recent attacks and also tell you about what we do to ensure our service during this challenging time.

The US has targeted selected sites in Yemen in response to the attacks on vessels in the region. President Joe Biden states that this is a direct response to the rebels’ previous attacks, aiming to disable resources and reduce the possibility of future incidents.

In response to these actions, new attacks by the rebels have been reported in the beginning of this week. Two bulk vessels from Greece and the US were targeted and attacked by missiles in the Red Sea and Gulf of Aden. The fact that one of the attacks occurred in the Gulf of Aden signifies an expansion of the risk area beyond the Bab Al-Mandeb strait, intensifying the uncertainty in the region.

As previously communicated, we continue to anticipate a scenario where the shipping companies choose the route around the Cape of Good Hope, which means longer transit times, reduced capacity (known as lost vessel), disruptions in predetermined schedules, congested ports with the risk of queues, and possibly shortages of empty containers.

In this volatile and uncertain situation, we observe rapidly changing prices from the shipping companies, which is affecting all cargo that usually transits through the Bab Al-Mandeb strait and the Suez Canal. Additionally, the limited capacity of the Panama Canal has been affecting the global trade and shipping industry for some time now as well.


What do we do to ensure our service?

At C Land, we have many years of experience and knowledge of the industry to gather and verify information. However, it is a bit challenging to have all the answers when the entire supply chain is unpredictable and difficult to anticipate.

Based on our processes, we have decided to implement additional measures to optimize our work and meet the expectations in providing the latest information available. Each day, we analyze and make qualified estimates to provide the most accurate information possible. While we may not always be spot-on, every date in our C Land Online System is carefully considered.

We understand that this situation is challenging for you and your customers, and we appreciate your understanding. You can be assured that we are working with great dedication to navigate the current conditions and deliver the best possible service for you.

Commitment Beyond Borders. Always.


C Land Logistics.

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