UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

February 2, 2024

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 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.

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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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