ALERTS & ​ADVISORIES

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
February 23, 2024
Container Ship
Container Ship

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.

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About JAS

JAS, a global leader in logistics and supply chain solutions, was founded in Milan, Italy, in 1978. Headquartered in Atlanta, Georgia, and supported by 7,000+ team members in more than 100 countries, JAS focuses on creating solutions that are innovative, sustainable, and tailored to customer needs. As a privately owned company, JAS is committed to creating opportunities for communities, customers, and colleagues to thrive.

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