UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

March 15, 2024

Containers at port.

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.

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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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