ALERTS & ​ADVISORIES

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
February 2, 2024
Container Ship
Container Ship

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 1st 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.  

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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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