ALERTS & ​ADVISORIES

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
JAS Staff
December 20, 2023
Container Ship
Container Ship

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.  

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