After a cargo ship collided with the Francis Scott Key Bridge on Tuesday, leading to its subsequent collapse, efforts to clear the debris have begun.

As of today, March 29th, the operational situation at the port is as follows: a crane has arrived at the site of the collapse to begin removing debris and clearing the wreckage from the channel, with another expected to arrive tomorrow. Additionally, three heavy lift vessels are routed to the site to assist in debris removal. Opening the port is a priority for workers; however, the timeline for clearing the area between the two pillars that supported the bridge’s main span, necessary for reopening vessel traffic, remains unclear.

While vessel traffic remains suspended, truck processing at marine terminals is still operational. Any new cargo arrivals scheduled for the terminal are being redirected through alternative ports in the region, primarily Norfolk and New York.

The Port of Baltimore reports that the ships unable to leave include three bulk carriers, one car carrier, two general cargo ships, one oil/chemical tanker, and three logistics naval vessels.

One Ocean Carrier has declared Force Majeure, CMA CGM, while the remaining advised they have stopped accepting bookings From, to/via Baltimore, and all cargo in transit will be re-routed. Information regarding active bookings via Baltimore will come from your local JAS offices, and all new bookings will be handled via alternative ports. For more details, please reach out to your JAS local office.  

For further detailed information and /or shipment specific information, or alternative solutions, please contact your local JAS office.

The collapse of the Francis Scott Key Bridge in Baltimore, Maryland—the fifth busiest container port on the US East Coast—will cause significant disruptions for US importers and exporters. Due to the hazardous and unstable conditions of the bridge the number of casualties remains indeterminate. However, more important than the obvious business disruptions are the lives affected by this unforeseen tragedy. JAS’s thoughts are with the people, families, and companies impacted as rescue teams work to secure the hazardous and unstable conditions of the bridge.

According to the Maryland Port Administration, “vessel traffic into and out of the Port of Baltimore is suspended until further notice.” As such, multiple merchant vessels, bulk carriers, and a vehicle carrier are now stuck in limbo within the Port of Baltimore. Cargo already gated into Baltimore terminals must be shifted to alternative ports, where possible, or await the uncertain reopening of the Port.

The next vessels currently scheduled to call the port are for Thursday, March 28th. This information should be seen as dynamic, with high possibilities to change. Shippers with cargo tied to these vessels will need to make alternate arrangements for cargo handling and discharge. Operational restrictions by carriers may impact cargo owners request for diversion and / or termination. Carriers may equally choose offloads at ‘next port of call’ which may be instituted based on terms and conditions in the governing bill of lading.

Due to the indefinite closure of the Baltimore port, a shift to Norfolk, Philadelphia, and / or New York/New Jersey might be an option. The sudden shift of cargo to neighboring ports, primarily Norfolk and New York/New Jersey, will likely lead to increased volume handling in these ports. While there will be bottleneck effects and delays in cargo processing, historical volume data suggests that Norfolk and New York/New Jersey have sufficient capacity to handle the spill-over from Baltimore.

JAS Teams are available to drive collaboration, swift adaptation, and transparent communication among all stakeholders impacted to minimize disruptions and ensure the smooth flow of goods. Stay tuned for further updates and guidance as the situation develops. For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.

Current Situation  

The ongoing Red Sea container shipping crisis, now in its fourteenth week, shows tentative signs of potential progress through diplomatic efforts and the IMO meeting. However, concrete actions and a clear normalcy timeline remain uncertain; as we have witnessed, attacks have continued throughout this past week. Shippers and industry stakeholders should brace for continued disruptions and adapt strategies accordingly. The coming weeks will be crucial for interpreting the outcome of the IMO meeting and its potential impact on the situation. 

Industry Insights, Facts & Market Developments 

Below are some additional key facts and market developments surrounding the situation, including a timeline of major events.  

• Drewry's WCI Composite Index shows a continuing decline of 5% week over week. Drewry also recognized a trade specific decline from Asia to North Europe and the Mediterranean of 8%, whereas freight rates on transatlantic registered a 2% increase West and Eastbound this past week.  
• US CENTCOM continues to report successful engagement and destruction of a variety of drones, missiles, and drone boats, as well as drones on land; before they are ever utilized. Avoiding the launch of attacks has become the new 'normal.’' 
• US Maritime Administration outlined the most pressing threats for US affiliated vessels in their latest advisory, accounting for 47 attacks and one seizure during the crisis. The advisory also warns that the geographical scope for threats is much larger in scale than the Red Sea.  
• UKMTO (United Kingdom Maritime Trade Operations) reported various vessel attacks as well as attempts in the past week.  
• Media reported widely today that potential deals being worked on between the Houthis with Russia and China. While details are not clear nor substantiated, this would heighten the geopolitical distress. 
• The International Maritime Organization (IMO) convened a virtual emergency meeting on March 18th to discuss potential solutions for safe passage through the Red Sea. Specific details and proposed actions are still pending. The Marine Environment Protection Committee (MEPC), addressing environmental issues under IMO's remit, also discussed the challenging efforts finding angles to assist regarding the sunken MV 'Rubymar'.  

Our Commitment

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

Current Situation  

The Red Sea crisis enters its thirteenth week with escalating concerns about extended delays and widespread disruptions impacting the global container shipping network. Terminations of voyages and congestion surges at regional port terminals are happening with short notice, further complicating logistics. The underlying geopolitical tensions continue to cloud the situation, hindering a swift resolution. 

Industry Insights, Facts & Market Developments

Below are some additional key facts and market developments surrounding the situation, including a timeline of major events.  

• Drewry's WCI composite index shows a further but slowed decline of 4% this week. Drewry expects spot rates ex-China to continue declining in the coming weeks, whereas freight rates on transatlantic will remain stable.  
• US CENTCOM continues to report successful engagement and destruction of a variety of drones, missiles, and drone boats, drones on land before they are being utilized. While successful engagement is cited, the past week has seen one of the largest and heaviest number of attacks from the Houthi militia. 
• UKMTO (United Kingdom Maritime Trade Operations) reported today that a vessel has been struck by a missile causing damage, the vessel continued its voyage and the crew reported being safe.  
• This past week has seen the highest number of attacks on commercial merchant vessels, container and breakbulk/conventional ships alike.  
• The European Union (EU) expresses growing concern about the impact of the Red Sea Crisis on global supply chains and calls for a diplomatic solution. 
• The Yemeni government accuses the Houthi militia of obstructing potential solutions to ensure safe passages in the Red Sea. 
• Industry reports highlight a rise in insurance premiums for vessels traveling the Cape of Good Hope route due to the increased voyage time.  
• The Houthi militia has today stated their intent to increase the geographical scope of attacks and in addition, potentially use hypersonic missiles, which they claim to have access to. If true, this would lead to further escalation of the current situation.  

Our Commitment

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

Current Situation  ‍

This week, the Red Sea crisis and geopolitical situation in the region worsened. Week 12 saw the first sunken vessel, MV 'Rubymar', leaking fuel and fertilizer, along with the tragic deaths of 3 seafarers that served on the MV 'True Confidence' when the attack occurred in the Gulf of Aden. Industry associations are urging vessel diversions until safe passage is guaranteed. 

Industry Insights, Facts & Market Developments

Below are some additional key facts and market developments surrounding the situation, including a timeline of major events.  

• Drewry's WCI composite index has dropped another 6% this week, bringing the total decline to 9.23% over the past month. This decline is further emphasized by specific routes, with the Asia to North Europe index now witnessing an even further drop at 27% against its peak seven weeks ago, and the Asia to Mediterranean index experiencing another few points bringing the decrease from last week's 24% to 30% this week. 
• US CENTCOM continues to report successful engagement and destruction of a variety of drones, missiles, and drone boats, drones on land before they are utilized. Yet, nothing has led to a decrease in attacks.
• UKMTO (United Kingdom Maritime Trade Operations) reported an incident 50 miles southeast of Yemen today, fortunately, the vessel involved
  was not struck and continued its journey safely.
• The MV' MSC Sky II' was attacked by two missiles on March 4th and continued its passage to Djibouti.
• The MV 'True Confidence', a bulk carrier, remains at drift in the neighboring Gulf of Aden with no crew on board since the hit by an anti-ship ballistic missile (ASBM) on March 6th.

Our Commitment

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.

Current Situation  
While eleven weeks have passed since the Red Sea crisis began, the immediate situation remains tense and unpredictable. We continue to see a concerting uptick in attack frequency, highlighting the region's dynamic and volatile nature. The first vessel incident with an oil leak also impacting the environment has been registered.

Industry Insights, Facts & Market Developments 

Below are some additional key facts and market developments surrounding the situation, including a timeline of major events.  

• Drewry's WCI composite index has dropped another 2% this week, bringing the total decline to 9.23% over the past month. This decline is further emphasized by specific routes, with the Asia to North Europe index witnessing a 20% drop from its peak six weeks ago, and the Asia to Mediterranean index experiencing a 24% decrease. 
• Sea-Intelligence reliability data releasing January data points now indicated 51.6% of vessels are on time only. While expected, it is the lowest since September 2022. This results in an average delay of 6.01 days. 
• While CMA-CGM continues to route select vessels via the Suez, alliance partner COSCO Shipping also seems to be planning to resume using the Suez routing, given their latest schedule updates on upcoming voyages. 
• US CENTCOM reported successful engagement and destruction of a variety of drones, missiles, and drone boats before they were utilized.  
• UKMTO (United Kingdom Maritime Trade Operations) reported multiple vessel attacks in the Bab al-Mandeb Straight in the past 48 hours. 
• The Yemeni Houthi militia claimed responsibility for the attack on the MV 'Rubymar' (dating back to February 18th). As of February 24th, the vessel remained anchored in the Red Sea, continuing to leak oil. The recorded oil slick was measured at 18 miles (29 kilometers) at the time. With the commodity being identified as fertilizer, environmental concerns and the risk of combustion and further pollution increased. Salvage options and the future of the vessel remain unclear.  

Our Commitment
JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.

Current Situation  

Two and a half months into the crisis, the immediate risk situation in the Red Sea has not improved, and multiple new attacks with high frequency have been witnessed in the region this past week. The long-term impact on container shipping remains uncertain. Continued geopolitical tensions, logistical challenges, and potential for disruptions contribute to an environment of volatility. Shippers and industry stakeholders are advised to remain informed and adjust their strategies accordingly. 

Industry Insights, Facts & Market Developments 

Below are some additional key facts and market developments surrounding the situation, including a timeline of major events.  

• Drewry’s WCI composite index, indicates a further 2% decline compared to last week. It is important to note that although the Index has decreased, it is still significantly higher than pre-pandemic levels and the 10-year average.  
• Spot rates from the US East Coast to Asia begin to rise, mirroring the earlier increases observed on European and Mediterranean routes reported last week.  
• Both MSC and Maersk announced additional vessels to be deployed on their Transpacific service due to the extended Cape of Good Hope route. 
• Hapag Lloyd reported two days ago that the Red Sea and Suez Canal routes continue to be avoided. A shuttle service connecting Red Sea cargo via Jeddah, Saudi Arabia, to Europe, North America, and Latin America has been implemented.  
• CMA-CGM had one 16,000 TEU vessel complete its southbound transit two days ago with others clearly intending to plan to transit in the coming week. The same information seems to be reflected in the carriers’ official schedules.  
• Industry experts again urge shippers to review their insurance coverage for transit, cargo loss and General Average.  
• US CENTCOM successfully continued to conduct strikes against missile launchers on land, preventing use this past week. Counter activities included intercepting a drone submarine launched by the Houthis. 

Our commitment 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and/or shipment specific information, or alternative solutions, please contact your local JAS office.

Current Situation  

Eight weeks into the Red Sea crisis, a tentative new normal emerges. While the timeline for re-routing through the region remains unclear, ocean carriers have largely adapted their schedules and ports of call, suggesting fewer operational disruptions on both primary and backhaul routes going forward. However, experts urge caution, emphasizing the inherent volatility of the situation and the potential for future flare-ups.

Industry Insights, Facts & Market Developments
Below are some additional key facts and market developments surrounding the situation.  

• Leading analysts predict a prolonged Red Sea closure, which could last through 2024. Shippers should remain vigilant for further supply/demand disruptions.
• US CENTCOM successfully intercepted seven missiles and four drone boats before they could be used to target the shipping industry.
• Two attacks on commercial vessels occurred in the Gulf of Eden and Bab al-Mandeb since our last update, causing minor damage but no injuries.
• EU Operation Aspides expands under Italian leadership, adding a German frigate. They focus on intelligence, logistics, air warning, cyber, and communication support due to the "Information Warfare" dimension.
• Eastbound spot rates to North Europe and the Mediterranean continue softening slowly, while backhaul rates to Asia see a delayed increase. Rates remain above pre-crisis levels with surcharges in effect. Expect continued volatility.

Our commitment

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

Current Situation: 

Seven weeks into the crisis in the Red Sea, the situation remains critical and extremely dynamic. The containerized ocean carrier community started to announce network changes with more permanent routing changes around the Cape of Good Hope, with new transit times and an alteration of port calls. As more carriers get organized daily, we will see more of those actions being taken, which should bring a more consistent approach for the time being.  

• Since our last update, there have been several attacks carried out by the Houthis, as well as an increased risk of piracy attacks from Somalia to add to this crisis. The latest attack occurred on February 1^st on a UK flag tanker vessel, the “Marlin Luanda.”
• The conflict has also moved into land where US troops have been attacked, which causes further instability and uncertainty in the region. So far, the attacks from US and UK armies have not slowed down the attacks by the Houthis.
• US CENTCOM reported that daily air strikes have taken place on Houthi inland targets in Yemen, and this is expected to continue. 
• Leading maritime security firm Ambrey advised that Maritime security concerns continue to escalate in the Red Sea, Gulf of Aden, Arabian Sea, Gulf of Oman, and the Indian Ocean, with threats growing significantly more complex and widespread.  

Key Facts & Market Developments: 

Below are some key facts and market developments surrounding the situation.

• Carrier Hapag Lloyd, given the on going dangerous situation and current security concerns, will continue to divert all vessels until further notice.  
• Maersk Line Limited still states that transit through the Red Sea will be suspended until further notice. 
• Carrier CMA-CGM still shows no change to its transit policy; we highlight again the need to carefully monitor vessel sharing agreement carrier shipments that may continue to transit on the same vessels.
• Ocean Network Express (ONE) CEO Jeremy Nixon stated earlier this week that the ongoing attacks against commercial shipping will have a material impact on transit times on the Asia – Europe and Asia – US East Coast trade lanes at least through the second quarter of 2024.  
• Rate levels continue to be higher than pre-crisis with new charges being announced such as Equipment Imbalance surcharges, however minor softening on spot rates has also been seen in certain pockets. Rate development remains dynamic and volatile.  

Going Forward: 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

Current Situation: 

Six weeks into the crisis in the Red Sea, the situation remains critical and extremely dynamic. The containerized ocean carrier community continues to reroute, with very few exceptions, their vessels around the Cape of Good Hope. The situation and the future direction of this conflict remain dynamic.

• Since our last update, no attacks were noted until Tuesday this week when two US flag vessels came under attack, which then turned around discontinuing their passage.  
• This was followed by a Liberian flagged bulk carrier, which was attacked on Wednesday.  
• We continue to witness that the frequency of the attack has no pattern.  
• According to media outlets, the Iranian Revolutionary Guard, as well as Hezbollah forces, are on the ground in Yemen, working jointly with the Houthis, directing attacks on shipping in the Red Sea. 
• US CENTCOM reported that daily air strikes have taken place on Houthi inland targets in Yemen. 

Key Facts & Market Developments: 

Below are some key facts and market developments surrounding the situation.

• Carrier Hapag Lloyd announced two days ago that, given the ongoing dangerous situation and security concerns, they will divert all vessels until further notice. 
• The 2M alliance announced yesterday that network changes for Asia – Europa and Asia – Transpacific Services are being announced.  
• Maersk Line Limited announced today that transit will be suspended until further notice. 
• Carrier CMA-CGM still shows no change to its transit policy; we highlight again the need to carefully monitor vessel sharing agreement carrier shipments that, therefore, may continue to transit on the same vessels.
• On the Asia-Europe trade market rates only increased a marginal 1% this past week. Industry experts have pointed out that the rate difference between destinations in North Europe and the Mediterranean is at almost USD 1500.00 / 40’ container. 
• Backhaul rates to Asia from North Europe should equally be monitored closely as benchmarking platforms report +130% increases in rates compared to pre-crisis levels.  

Going Forward: 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website update will occur once per week, every Friday.  

For any more detailed and / or shipment specific information, or alternative solutions, please contact your local JAS office.  

Current Situation: 

Five weeks into the crisis in the Red Sea, the situation continues to be critical and extremely dynamic. Given the situation has again worsened in recent days, various maritime research and consulting firms, as well as one global ocean carrier CEO, have communicated an outlook that carriers resuming Suez Canal transits seem more like months than weeks away until the risks of attacks are eliminated.

• Every day this past week, media reported on attacks being carried out, with both the frequency of the attacks and ‘hit ratios’ increasing.
• US forces attacked 14 locations in Yemen during a nighttime operation earlier this week, targeting the location of missile launchers. US officials acknowledged that airstrikes against Houthi militants in Yemen will not deter the group from attacks, yet it does not mean the military campaign will stop anytime soon.
• Today, Maritime Unions urged TRANSCOM for enhanced communication in the Red Sea, pointing out that the severe attacks represent the biggest threat to commercial shipping in over 50 years. At the same time, they expressed gratitude for the support to date to safeguard ships and crew.

Key Facts & Market Developments: 

Below are some key facts and market developments because of the situation.

• In the first two weeks of 2024, transits around the Cape of Good Hope have increased from 77 to 206. Reflecting an increase of 168%. With a few exceptions, all major containership ocean carriers are participating largely in this routing option. CMA-CGM is amongst those that transit, escorted by French warships.
• The market spot rates featured in directly impacted East-West trades, as per the World Container Index, saw a weekly increase from Asia to North Europe of 12% and into the Med of 21%, respectively. While a smaller increase week over week, it is still significant. Backhaul rates to Asia have climbed 50%.
• Global benchmarking and market intelligence platform Xeneta reported yesterday that some carriers make up for the longer transit time by omitting port calls at the start of round trips. Northern-most ports in Asia are affected by this, as services starting in Tianjin or Dalian, now seem to begin in Shanghai or Ningbo.

Going Forward: 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website will be updated once per week, every Friday. 

For any more detailed and/or shipment-specific information, please contact your local JAS office. 

Current Situation: 

Four weeks into the crisis in the Red Sea, the situation remains critical and extremely dynamic. The world’s largest container carriers (VOCC’s)continue to reroute, with a few exceptions, their vessels around the Cape of Good Hope. 

• Three days ago, the Houthis launched their biggest attack yet, with very little overall impact. It has demonstrated the effectiveness of the coalition’s presence in executing area defense operations. 
• Yesterday, the RAF and US Navy launched the first counterattack by the coalition in response to Houthi aggressions since this conflict started. Over one dozen vessels in the area made instant route changes, based on AIS data, to reach safe points or pursue the Cape of Good Hope.  
• The situation and the future direction of this conflict remain dynamic and therefore unclear; however, expectations are that rerouting will continue. 

Carrier Responses: 

Below is a recap of the current situation as announced by carriers this week; however, the situation is very fluid and continues to evolve. 

• Carriers at large continue to reroute vessels with scheduled services from the Suez Canal around the Cape of Good Hope. Vessel sharing agreements (VSA) need to be carefully monitored, as the vessel operator’s choice will include alliance partners. 
• Several ocean carriers have stopped offering new long-term rate agreements in Asia to Europe and Mediterranean trade, as well as India Sub-continent services via Suez to the US East Coast. The reasons cited include the need to assess additional cost factors, a lack of clarity based on long diversions and rerouting, as well as equipment imbalance and berthing window impact. 
• Global benchmarking platform Xeneta has reported space guarantee/premium surcharge offers being presented by ocean carriers up to $1500 per container to ensure priority services prior to Chinese New Year holidays, starting February 10th. 

Going Forward: 

JAS Worldwide will continue to monitor the situation and keep you duly updated. Our public website will be updated once per week, every Friday. 

For any more detailed and/or shipment-specific information, please contact your local JAS office. 

Ao entrarmos em 2024, é fundamental que as empresas estejam cientes de dois feriados que podem afetar as operações. Dois grandes eventos, o Ano Novo Chinês e o Carnaval, estão programados para coincidir, afetando as cadeias de suprimentos em todo o mundo.  
 
O Ano Novo Chinês, um feriado tradicional chinês que marca o início de um novo ano no calendário lunar chinês, começa em 10 de fevereiro e é observado em muitos países asiáticos. Durante essa semana, fábricas e empresas fecharão, pois o feriado traz uma semana de folga para os funcionários viajarem e comemorarem o início de um novo ano com suas famílias. No entanto, espera-se que a desaceleração das fábricas ocorra no início ou em meados de janeiro, com a retomada das operações normais no final de fevereiro.  
 
Simultaneamente, o festival de Carnaval estará em pleno andamento, especialmente no Brasil, onde as festividades ocorrerão de 9 a 17 de fevereiro. Assim como no Ano Novo Chinês, as consequências das comemorações podem ser sentidas em todas as cadeias de suprimentos no Brasil e no exterior, pois muitos fabricantes e fornecedores reduzirão as horas de trabalho ou interromperão as atividades, já que os funcionários tirarão folga para comemorar.  
 
Com duas grandes economias, a China e o Brasil, comemorando feriados importantes simultaneamente, é fundamental que as empresas planejem e se preparem adequadamente, pois a sobreposição dessas festividades deverá impactar as cadeias de suprimentos globais.  
 
Para mitigar efetivamente o impacto dessas comemorações em sua cadeia de suprimentos, recomendamos as seguintes medidas proativas:

• Planeje com antecedência: Antecipe o aumento da demanda por serviços de logística e planeje as remessas com bastante antecedência para reduzir possíveis atrasos. Para evitar interrupções desnecessárias e aumentos de preços, é recomendável fazer as reservas com bastante antecedência, de preferência quatro a seis semanas antes do Ano Novo Chinês.  
• Diversifique as rotas e os métodos de remessa: Explore rotas de remessa alternativas para evitar congestionamentos e possíveis interrupções nas rotas tradicionais. Além disso, considere o uso de várias formas de transporte caso um método sofra interrupções durante esse período.  
• Ajuste os cronogramas: Seja flexível com as programações de produção e entrega para acomodar a desaceleração temporária das operações durante os feriados.
• Mantenha-se informado: Monitore regularmente as atualizações e avisos de autoridades relevantes e fontes do setor para se manter informado sobre quaisquer mudanças ou desenvolvimentos que possam afetar as operações.  
  

A ocorrência simultânea do Ano Novo Chinês e do Carnaval este ano ressalta a importância de medidas proativas e de uma abordagem bem coordenada. Ao integrar esses insights à sua estratégia de planejamento, as empresas podem garantir uma transição mais tranquila durante esse período e manter a eficiência operacional. Para obter mais informações, entre em contato com o escritório local ou com o representante da JAS.

‍

Current Situation  

Two weeks into the crisis in the Red Sea, the situation continues to be critical and extremely dynamic. The world’s largest container carriers (VOCC’s) have chosen most of their voyages utilizing re-routing of their vessels around the Cape of Good Hope.

• The US led 10-nation coalition of navy’s named “Operation Prosperity Guardian” continues their efforts to protect the selective voyages transiting the Suez Canal. 
• While there have been no reported vessel attacks in the Red Sea in the last 48 hours, it is crucial to understand that the situation remains dynamic, and the risk of attacks remains high based on credible sources.  
• In addition to the extra operational cost for carriers going around the Cape of Good Hope, this will also affect the cost of the recently advised ETS surcharges due to longer routes resulting in higher emissions. Same surcharge is valid from last non-EU port to first EU port (and vice versa) 

These incidents have increased the risk of shipping in the region, and we have seen action taken by most of the world's largest container carriers (VOCCs) to mitigate the risk for their employees and vessels operating in these waters.

Carrier Responses

Below is a recap of the current situation as announced by carriers today; however, the situation is very fluid and continues to evolve.

• The carriers continue to re-route vessels with scheduled services from the Suez Canal around the Cape of Good Hope.  
• Maersk and CMA-CGM are currently devising plans for the gradual increase of vessels transiting the Suez Canal, carefully monitoring the security situation for safe passage.  
• A variety of surcharges have been announced by carriers in directly and indirectly impacted trade lanes, ranging from Peak Season to Operational Recovery to Contingency Adjustment surcharges to name a few.  

Going Forward

This conflict continues to have significant implications for Global trade. The global carrier community is citing impact to the equipment pool, balance as well as a potential vessel shift to facilitate operational network needs. JAS will continue to monitor the situation and keep you appraised accordingly.  

For any questions and concerns, please contact your local JAS office.

Current Situation  

The Red Sea is a vital waterway for global trade, connecting Asia, Europe, and Africa. However, it is also a hotspot for geopolitical tensions, piracy, and armed attacks. In the past few weeks, several incidents have occurred that have disrupted the maritime traffic and raised security concerns in the area. This is claimed to be a consequence of the Israel / Palestine conflict which sees attacks on commercial vessels thought to be headed for Israel.  

• A 10-nation coalition of navies are currently operating in the Red Sea to protect the waterways.  
• Attacks are still occurring from Yemen on vessels in the Bab el-Mandeb strait and are expected to continue.  
• Approximately 12% of global trade passes through the Suez Canal, which includes 30% of all container trade, making this a significant portion of all cargo shipped in containers being affected.  

These incidents have increased the risk of shipping in the region, and we have seen action taken by most of the largest container carriers (VOCC’s) in the world to mitigate the risk for their employees and vessels operating in these waters.  

Carrier Responses  

Below is a recap of the current situation as announced by carriers as of today; however, the situation is very fluid and continues to evolve.  

• All major carriers (excluding OOCL and Cosco) have officially announced that they have ceased vessel operations in the Red Sea and passage through the Suez Canal. Vessels are either waiting in safe waters or being re-routed around the Cape of Good Hope. All vessel re-routings via the Cape will add on average 10-14 days of transit time unless the vessels significantly increase their speed.  

• Evergreen, COSCO and OOCL has stopped accepting cargo to Israel with immediate effect and until further notice. 

• No official statements yet from Cosco or OOCL on suspending service through the Red Sea; however, they both do appear to have stopped, as well, as per news outlet Caixin Global. Official notifications are expected later today.  

• Most major carriers are announcing rate increases on the affected Trade Lanes at various but significantly increased levels.

Going Forward

This conflict will have massive implications on global trade, and all shippers should expect serious delays, vessels out of place for weeks or months to come, and significantly increased costs on all services transiting the Red Sea. The full scope of the implications is unclear, but we at JAS will do our utmost to keep you updated on the situation as it unfolds and work with all customers and partners to provide the best solutions possible.  

For any questions and concerns, please contact your local JAS office.

Thank you.  

Current Situation

The Red Sea is a vital global trade waterway connecting Asia, Europe, and Africa. However, it is also a hotspot for geopolitical tensions, piracy, and armed attacks. In the past few weeks, several incidents have disrupted maritime traffic and raised security concerns in the area. This is claimed to be a consequence of the Israel / Palestine conflict, which sees attacks on Commercial vessels thought to be headed for Israel.

• At the beginning of December, several attacks happened on both Navy vessels and commercial vessels in the Red Sea. This has evolved into targeted attacks on commercial Container carriers in the last week.
• On December 14th, Maersk Gibraltar, a Hong Kong-flagged Container vessel owned by Maersk, was involved in a near-miss missile attack in the Bab al-Mandab strait in the Red Sea
• On December 15th, Al Jasrah, a Liberian-flagged Container vessel owned by Hapag Lloyd, was attacked and hit by a missile fired from Yemen in the Bab Al-Mandab strait. The vessel sustained damage on the port side, and at least one container fell overboard. No crew was reported injured in this incident.
• On December 15th, the MSC Alanya, a Liberian-flagged Container vessel owned by Mediterranean Shipping Company, was also involved in a near-miss missile attack.
• On December 15th, the MSC Palatium III, a Liberian-flagged Container vessel, sub chartered to Messina Line, was struck by a missile attack, causing limited fire damage. All crew members are reported safe, and the vessel has been removed from service.
  

These incidents have increased the risk of shipping in the region, and we have seen action taken by most of the world's largest container carriers (VOCCs) to mitigate the risk for their employees and vessels operating in these waters.

‍

Carrier Responses

Below is a recap of the current situation as announced by carriers as of today; however, the situation is very fluid and can change quickly:

• Maersk announced on Friday, December 15th, that it would reroute some of its vessels scheduled to transit the Suez Canal to now go via the Cape of Good Hope in South Africa, adding several days to the transit time.
• CMA CGM announced on Sunday, December 17th, that it would reroute some of its vessels scheduled to transit the Suez Canal to now go via the Cape of Good Hope in South Africa, adding several days to the transit time.
• HAPAG-LLOYD announced on Friday, December 15th, that it suspended all sailings through the Red Sea until further notice.
• MSC announced on Sunday, December 17th, that it would reroute some of its vessels scheduled to transit the Suez Canal to now go via the Cape of Good Hope in South Africa, adding several days to the transit time.
• Other Carriers have made similar statements about bypassing or avoiding the Red Sea and Suez Canal, Like ONE, ZIM, yang Ming, and HMM.
• Evergreen, COSCO, and OOCL have stopped accepting cargo to Israel with immediate effect and until further notice; however, there are no statements yet on suspending service through the Red Sea.

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Going Forward

This conflict will have massive implications on Global trade, and all shippers should expect severe delays, vessels out of place for weeks or months to come, and significantly increased costs on all services transiting the Red Sea. The full scope of implications is unclear, but we at JAS will do our utmost to keep you updated on the situation as it unfolds and work with all customers and partners to provide the best solutions possible.
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For any questions and concerns, please contact your local JAS office.

Thank you.

At JAS Worldwide, we understand the critical role supply chain and logistics companies play in shaping the present and future of sustainable transportation. As the global community comes together to celebrate World Sustainable Transport Day, we are proud to share our commitment to helping reduce the industry's environmental footprint by providing customers with sustainable solutions when transporting goods.

The Importance of Sustainable Transport

Sustainable transport is more than a buzzword; it is a responsibility that the Transport and Logistics industry has, as it contributes significantly to the global carbon footprint. With the world facing challenges such as dwindling fossil fuel resources, climate change, and the resulting impact on various communities, the need for sustainable transport solutions has never been more critical. As a global logistics and supply chain provider, we recognize our responsibility to lead by example and contribute to more sustainable operations.

A Cleaner Way Forward

Our partnership with GoodShipping showcases our dedication to sustainable transport solutions. By providing clients with the option to inset sustainable marine biofuel, we empower them to make eco-conscious choices for their shipping needs. These biofuels are produced from renewable sources and have a significantly lower environmental impact than conventional options, making them a responsible and sustainable choice for ocean freight.

Another step we've taken in our journey towards sustainability is the incorporation of electric trucks into our fleet. Electric trucks such as the type JAS uses are known for their low emissions, energy efficiency, and reduced environmental impact, aligning seamlessly with our eco-conscious approach. In fact, when evaluating the entire Well-To-Wheel (WTW) cycle, an electric truck can achieve up to a 92% reduction in CO2 emissions compared to traditional diesel trucks, marking a significant step toward more sustainable operations.

Network optimization is another way we reduce transport emissions, for example by embedding rail and ocean transport into the supply chain wherever possible, choosing the most efficient route for each stage of the journey, and maximizing freight utilization thereby reducing the need for additional trips. We consult with our customers to make informed decisions based on their business priorities and help them track their progress in reducing their emissions.

A Holistic Approach to Sustainability

Sustainability isn't just about implementing a single solution; it's about embracing a holistic approach. At JAS, we integrate sustainable practices into every aspect of our business, from our daily operations to the choices we make in selecting partners and suppliers who share our commitment to sustainability.

We continually look for new technologies and practices that will further reduce our carbon footprint and improve the well-being of our people and the communities where we operate. Our commitment to sustainability is not a one-time effort but an ongoing journey toward a more responsible future.

Join Us in Celebrating World Sustainable Transport Day

As we commemorate World Sustainable Transport Day, we invite our partners, clients, and the global community to join us in embracing sustainable transport solutions. We are excited about the journey ahead and are committed to further innovations that will make the world of logistics more sustainable. Happy World Sustainable Transport Day!

JAS would like to provide you with an operational update regarding the ongoing situation in Israel following the recent conflict. 

First, we want to assure you that the safety and well-being of our agents and their staff are our top priorities. We are committed to providing continuous support to our agents during this challenging time. 

Office Operations: 

Our agent's headquarters in Or Yehuda and its branches in Haifa, Ashdod, and Tel Aviv are currently operational. 

JAS's agents are equipped to provide services both from their offices and remotely. However, please be aware that some delays may occur due to the situation on the ground. 

Ocean and Air Freight: 

• Israel's seaports, specifically Ashdod and Haifa, are currently operational. 
• The Ben Gurion International Airport (TLV) is open and functioning after flights were paused in the afternoon on October 7. 
• Customs and regulatory authorities are also operating. 

While our agent in Israel is doing its best to maintain our operations, it is important to note that the situation is dynamic and subject to change at short notice. JAS is closely monitoring developments and will work alongside our agent to adapt accordingly.  

For more information, please reach out to your local office.

Supply chain management is a complicated process even under the best of conditions. When a tropical storm occurs, the process is made even more complex as the extreme weather can not only wreak havoc on homes and buildings; but, the subsequent high winds and flooding, can disrupt and delay freight transportation, potentially causing supply chain delays and failures. As tropical storm season begins, it is important to plan ahead for adverse weather events to minimize potential repercussions.

1. Know How to Prioritize Your Freight: The severe weather associated with tropical storms can shut down ports and ground flights. When operations do begin, capacity may be reduced, and extensive backlogs are possible. By understanding which freight is most important to maintaining business continuity, you can help prevent further disruptions downstream.
2. Plan for Inventory Disruptions: During the peak of tropical storm season, it can be wise to plan for additional inventory to be on hand in case your supply chain is disrupted due to significant port and airport closures and delays.  
3. Keep an Eye on the Sky: Taking a proactive approach to monitoring the weather during tropical storm season is vital. It allows you to stay well-informed of impending severe weather that might impact shipment delivery. While the forecast may change at a moment’s notice, it is essential you are aware of the weather forecast and any precautionary measures taken locally, such as port and airport closures and shelter-in-place orders.
4. Utilize Technology to Increase Supply Chain Visibility: In the event of severe weather, maintaining supply chain visibility and real-time access to information about paused and canceled shipments is vital. By maintaining supply chain visibility, you can more readily identify potential problems and areas of concern, allowing informed decisions on things such as expediting time-sensitive cargo to be made early on minimizing disruptions.
5. Maintain a Line of Communication: When severe weather occurs, it is important to maintain a clear line of communication with your service providers. This means ensuring that your provider knows which cargo is of the highest priority and giving as much notice as possible about a needed shipment as canceled flights and closed ports can delay shipments and reduce capacity.

With the start of tropical storm season having arrived, it is important to be prepared for whatever disruptions severe weather might bring. Whether it is developing a contingency plan long before extreme weather conditions occur or rerouting cargo and utilizing air cargo options when severe weather occurs, JAS can help keep your supply chain running smoothly. To make sure you are ready for tropical storm season, contact your local JAS office.

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Even before the Suez Canal blockage the shipping industry was facing extreme congestion levels in many ports across the globe, including those in the USA, Canada, South Korea, China, Singapore, and the United Kingdom. With demand remaining high, port congestion challenges will continue for months to come with increased volumes, restrictions due to COVID-19 requirements, and missed berthing windows.

Even if the Suez Canal is now open, the operational impact of a week blockage will have a ripple effect lasting for weeks:

• A further deterioration of schedule reliability and additional equipment unbalance is to be anticipated even on Trade-Lanes not directly related to the Suez Canal.
• Some steamship lines have stopped accepting new bookings from Europe to USA until end of April.

Marine terminals at the U.S. ports of Los Angeles and Long Beach are experiencing some of the worst congestion, with anchorage times often exceeding a week. In March, the United States passed another stimulus bill, while at the same time, COVID-19 infection rates are decreasing, multiple states are relaxing COVID-19 restrictions, and the number of people vaccinated continues to grow. Consumer spending and retail imports are predicted to remain high, and even increase, throughout the spring and summer months, providing the ports with no relief when it comes to congestion.

While it can be challenging to avoid port congestion, there are some ways to minimize the impact of port congestion and plan for success.

1. Explore alternative gateway ports that face less congestion. With the congestion on the U.S West Coast, many are exploring other port options such as the Port of Seattle. Alternatively, some are choosing to bypass the U.S. West Coast altogether in favor of going through the Panama Canal and up the East Coast.
2. Plan ahead. At this time, planning ahead is key and booking shipments as soon as possible can help keep your supply chain moving. With the current equipment shortages and severe congestion at ports, some levels of delays are almost unavoidable. Therefore, it is important to build extra time into your schedule to account for the current conditions.
3. Consider utilizing other shipping methods. As in non-pandemic times, ocean freight affords the opportunity for cost reductions when compared to airfreight. However, the lead time is much longer than airfreight. When facing time constraints, air freight may be a more viable option. Another option to consider is LCL Ocean freight, smaller but more frequent shipments can keep your supply chain moving. While LCL also faces congestion issues it is much easier to be flexible and by splitting product on more vessels, better chance that cargo gets moved using multiple vessel/ports to get product through. Talk to your JAS representative for options on alternative shipping methods that fits your needs.
4. Stay in contact with your JAS representative. With the increased port congestion, it is more important than ever to stay in contact with your local representative so that you are aware of arrival times, equipment availability, and market conditions.

For more information on how to navigate the current port congestion, contact a JAS representative.

For more information about current ocean market conditions, read our most recent ocean market update: https://www.jas.com/market.

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