NEWS FROM jas wORLDWIDE

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  

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.  

The Emberá people are an indigenous community primarily residing in Colombia, with approximately 50,000 individuals identifying as part of this group. Due to factors such as armed conflict and mining exploitation in their ancestral territories, many Emberá have been forced to leave and migrate to major cities like Bogotá. Despite some support in the capital city of the country, the Emberá community faces discrimination, and efforts to provide basic necessities such as clean water and food are insufficient.

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Women and children in the Emberá community are particularly affected by these challenges. Forced to leave their lands, they grapple with societal indifference, language barriers (as Spanish is not their native language), and the struggle to preserve their cultural identity.

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Recognizing the need to support local communities, JAS Colombia collaborated with 'El Banquete del Bronx', a local NGO, to visit one of the Emberá settlements in Bogotá. The activity included providing food, hygiene kits and, above all, sharing moments of joy with the little ones by drawing and playing games. This initiative is part of the Bruni Foundation's 'Pay it Forward' program, which empowers JAS employees to become ambassadors of change by actively supporting social and environmental causes.

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The event began with a presentation by the local NGO to JAS employees, aiming to raise awareness about the situation of the Emberá and other minority groups – and the reasons behind their migration to urban areas. The presentation underscored the role of every citizen in bringing some hope, aiding their adaptation process, and, more broadly, fostering respect for ethnic communities.

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Addressing some of the challenges women and children face within the Emberá community is only one of the initiatives toward a more inclusive and sustainable future that the Bruni Foundation is committed to. Throughout the year, the Bruni Foundation will support various global projects, primarily focusing on these United Nations Sustainable Development Goals (SDGs): Quality Education, No Poverty, Clean Water and Sanitation, and Zero Hunger.

Completing nine weeks of 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. The only remaining carriers who traverse the Red Sea are smaller Asian carriers. 
• The Houthi claim to be attacking only US, UK, and Israeli ships, but experts state this is rather subjective, and all ships are at risk in the Red Sea. 
• US CENTCOM successfully intercepted missiles launched by Houthis in the past week, as well as launching several counterattacks.  
• All major carriers continue to go around the Cape with extended Transit time and higher costs to follow. The supply chain has started to adjust to the new reality.  
• More information has come out on EU Operation Aspides, which is set to last for one year, be purely defensive in nature with no attacks on Yemeni soil, and based on Greece.  
• Hapag Lloyd is reducing their Operational Recovery Surcharge from US East and Gulf Coast to Asia effective February 16th, today, which was initially implemented February 5th only. While back haul related, a sign of relief. 
• Drewry’s WCI, released yesterday, indicated that from Asia to Europe and the Mediterranean, it continued to decline, but the pace of decline slowed compared to the past week.  
• Backhaul rates from Europe and the Mediterranean to Asia seem to be catching up, reacting to the crisis. Xeneta reported a 68% rise in North Europe to Asia and a 45% increase in Mediterranean rates since December 31st, 2023.  

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.  

Protecting Blue Whales and Blue Skies is a voluntary Vessel Speed Reduction (VSR) Program along the coast of California which incentivizes companies to incorporate sustainable shipping practices across their global supply chain. By creating seasonal and predictable slow speed zones, this program helps companies protect endangered whales, reduce fuel use and regional greenhouse gas emissions, and improve air quality and human health outcomes.

The program runs each year from mid-May to December to coincide with peak ozone and whale feeding and migration. The program covers two geographic regions, one along the Southern California coast and one outside the San Francisco Bay Area.

Since 2014, the program has achieved an estimated 44% decrease in the risk of whale strikes. 

As an ambassador, JAS engages with its shipping partners operating in the area, recognizes the shared vision and commitment with those already involved in vessel speed reduction, and further encourages other ocean carriers to participate in the program. 

“What makes the BWBS initiative stand out is that it not only addresses carbon emissions, but also safeguards biodiversity. By voluntarily reducing vessel speed (VSR) along the California coast, ocean carriers commit to protecting blue whales and raising industry awareness. JAS supports this initiative and will further engage its logistics partners on the key role whales play in the environment and our responsibility to improve the ocean ecosystem.” -Andrea Goeman, SVP QHSE & Sustainability, JAS Worldwide

“Being an ambassador for the BWBS Program is a great initiative towards more sustainable ocean freight solutions. It is a way to further engage with our carriers, with whom we share values towards a sustainable transformation, and an example of how collaboration can be beneficial for the logistics ecosystem, our customers, and the environment.” -Lars Huebecker, EVP Global Head of Ocean Freight

JAS UK proudly announces that it has been granted its Wholesale Distribution Authorisation (WDA(H)) license from the UK's Medicine and Healthcare Products Regulatory Agency (MHRA) for its Pharma and Healthcare Division.  

In addition to the GDP certified network JAS has developed, this achievement marks a significant milestone for JAS as it reinforces its commitment to providing innovative solutions for the international delivery of pharmaceutical products. With more operations spanning over 100 countries and a team of more than 7,000 professionals, JAS is known for its comprehensive logistics solutions and dedication to customer satisfaction.

Adrian Frodsham, Regional Director for JAS, said: "We are pleased to have been granted our WDA(H) license after a stringent audit process. JAS UK's Pharma and Healthcare division prides itself of offering innovative solutions for the international delivery of pharmaceutical products, further enhancing the growth of our pre-established healthcare division."

While boasting an established healthcare division across its global network, the acquisition of the WDA(H) license empowers the UK division to seamlessly connect with its more than 40 GDP (Good Distribution Practice) certified overseas stations, enhancing its capabilities for handling pharmaceutical shipments.

Committed to adhering to the highest standards of quality and compliance, JAS UK has developed a purpose-built healthcare and pharmaceutical Electronic Quality Management System (QMS). This system, coupled with the WDA(H) license, further solidifies JAS's position as a trusted operator within the logistics industry.
In line with its expansion efforts, JAS UK's Pharma and Healthcare Division recently inaugurated a state-of-the-art temperature-controlled storage facility in London. Spread across 5000 square feet, this facility features two CRT rooms designed to accommodate products requiring temperatures of 15°C to 25°C. Strategically located near London Heathrow Airport, the facility ensures the integrity of pharmaceutical products throughout the supply chain, providing customers with a safe, secure, and efficient door-to-door service.

JAS UK remains committed to delivering exceptional services to its Pharma and healthcare customers, leveraging its expertise, infrastructure, and technological capabilities to meet evolving industry demands.

For more information email GB-Pharma@jas.com.

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.