ALERTS & ​ADVISORIES

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
January 12, 2024
Containers at Port
Containers at Port

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. 

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Blue World Line

Dear Valued Customer, 

Due to the recent collapse of the Francis Scott Key Bridge in Baltimore, we are raising awareness that our services and contracts are affected by this situation.  

Therefore, in conjunction with similar actions taken by ocean carriers, Blue World Line hereby provides this notice, in accordance with the clauses 11 and 12 of its bill of lading, of the necessary re-routing of some vessels currently sailing to and from the Port of Baltimore. 

Cargo currently at the terminals in Baltimore will remain at the port until further notice and imports originally set to call the port of Baltimore have been rerouted to other US East Coast ports.  

JAS Worldwide, as agent for Blue World Line, is taking all necessary steps to preserve its transportation services for our customers and to mitigate the impact of this situation on your shipments. 

Lastly, this disruption will continue to impact our services along the east coast of the United States and drive booking and routing changes on both imports and exports calling the port of Baltimore.  We will continue our best efforts to keep you updated on the status of your shipments and any developments as they happen.  

We appreciate your understanding and cooperation in this difficult situation, and we will keep you updated on any additional developments. Please check back often at www.jas.com for the latest news. 

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

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