ALERTS & ​ADVISORIES

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
March 15, 2024
Containers at port.
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.  

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
March 8, 2024
Cargo ship from above.
Cargo ship from above.

Current Situation  

This week, the Red Sea crisis and geopolitical situation in the region worsened. Week 12 saw the first sunken vessel, MV 'Rubymar', leaking fuel and fertilizer, along with the tragic deaths of 3 seafarers that served on the MV 'True Confidence' when the attack occurred in the Gulf of Aden. Industry associations are urging vessel diversions until safe passage is guaranteed. 

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 has dropped another 6% this week, bringing the total decline to 9.23% over the past month. This decline is further emphasized by specific routes, with the Asia to North Europe index now witnessing an even further drop at 27% against its peak seven weeks ago, and the Asia to Mediterranean index experiencing another few points bringing the decrease from last week's 24% to 30% this week. 
  • US CENTCOM continues to report successful engagement and destruction of a variety of drones, missiles, and drone boats, drones on land before they are utilized. Yet, nothing has led to a decrease in attacks.
  • UKMTO (United Kingdom Maritime Trade Operations) reported an incident 50 miles southeast of Yemen today, fortunately, the vessel involved
    was not struck and continued its journey safely.
  • The MV' MSC Sky II' was attacked by two missiles on March 4th and continued its passage to Djibouti.
  • The MV 'True Confidence', a bulk carrier, remains at drift in the neighboring Gulf of Aden with no crew on board since the hit by an anti-ship ballistic missile (ASBM) on March 6th.

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.

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
March 1, 2024
Aerial view of cargo ships
Aerial view of cargo ships

Current Situation  
While eleven weeks have passed since the Red Sea crisis began, the immediate situation remains tense and unpredictable. We continue to see a concerting uptick in attack frequency, highlighting the region's dynamic and volatile nature. The first vessel incident with an oil leak also impacting the environment has been registered.

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 has dropped another 2% this week, bringing the total decline to 9.23% over the past month. This decline is further emphasized by specific routes, with the Asia to North Europe index witnessing a 20% drop from its peak six weeks ago, and the Asia to Mediterranean index experiencing a 24% decrease. 
  • Sea-Intelligence reliability data releasing January data points now indicated 51.6% of vessels are on time only. While expected, it is the lowest since September 2022. This results in an average delay of 6.01 days. 
  • While CMA-CGM continues to route select vessels via the Suez, alliance partner COSCO Shipping also seems to be planning to resume using the Suez routing, given their latest schedule updates on upcoming voyages. 
  • US CENTCOM reported successful engagement and destruction of a variety of drones, missiles, and drone boats before they were utilized.  
  • UKMTO (United Kingdom Maritime Trade Operations) reported multiple vessel attacks in the Bab al-Mandeb Straight in the past 48 hours. 
  • The Yemeni Houthi militia claimed responsibility for the attack on the MV 'Rubymar' (dating back to February 18th). As of February 24th, the vessel remained anchored in the Red Sea, continuing to leak oil. The recorded oil slick was measured at 18 miles (29 kilometers) at the time. With the commodity being identified as fertilizer, environmental concerns and the risk of combustion and further pollution increased. Salvage options and the future of the vessel remain unclear.  

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.

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.

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
February 16, 2024
Ships docked at the port during breathtaking sunset.
Ships docked at the port during breathtaking sunset.

Completing nine weeks of the Red Sea crisis, a tentative new normal emerges. While the timeline for re-routing through the region remains unclear, ocean carriers have largely adapted their schedules and ports of call, suggesting fewer operational disruptions on both primary and backhaul routes going forward. However, experts urge caution, emphasizing the inherent volatility of the situation and the potential for future flare-ups. 

Industry Insights, Facts & Market Developments 

Below are some additional key facts and market developments surrounding the situation.  

  • Leading analysts predict a prolonged Red Sea closure, which could last through 2024. Shippers should remain vigilant for further supply/demand disruptions. The only remaining carriers who traverse the Red Sea are smaller Asian carriers. 
  • The Houthi claim to be attacking only US, UK, and Israeli ships, but experts state this is rather subjective, and all ships are at risk in the Red Sea. 
  • US CENTCOM successfully intercepted missiles launched by Houthis in the past week, as well as launching several counterattacks.  
  • All major carriers continue to go around the Cape with extended Transit time and higher costs to follow. The supply chain has started to adjust to the new reality.  
  • More information has come out on EU Operation Aspides, which is set to last for one year, be purely defensive in nature with no attacks on Yemeni soil, and based on Greece.  
  • Hapag Lloyd is reducing their Operational Recovery Surcharge from US East and Gulf Coast to Asia effective February 16th, today, which was initially implemented February 5th only. While back haul related, a sign of relief. 
  • Drewry’s WCI, released yesterday, indicated that from Asia to Europe and the Mediterranean, it continued to decline, but the pace of decline slowed compared to the past week.  
  • Backhaul rates from Europe and the Mediterranean to Asia seem to be catching up, reacting to the crisis. Xeneta reported a 68% rise in North Europe to Asia and a 45% increase in Mediterranean rates since December 31st, 2023.  

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.  

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
February 9, 2024
Containership at Port.
Containership at Port.

Current Situation  

Eight weeks into the Red Sea crisis, a tentative new normal emerges. While the timeline for re-routing through the region remains unclear, ocean carriers have largely adapted their schedules and ports of call, suggesting fewer operational disruptions on both primary and backhaul routes going forward. However, experts urge caution, emphasizing the inherent volatility of the situation and the potential for future flare-ups.

Industry Insights, Facts & Market Developments
Below are some additional key facts and market developments surrounding the situation.  

  • Leading analysts predict a prolonged Red Sea closure, which could last through 2024. Shippers should remain vigilant for further supply/demand disruptions.
  • US CENTCOM successfully intercepted seven missiles and four drone boats before they could be used to target the shipping industry.
  • Two attacks on commercial vessels occurred in the Gulf of Eden and Bab al-Mandeb since our last update, causing minor damage but no injuries.
  • EU Operation Aspides expands under Italian leadership, adding a German frigate. They focus on intelligence, logistics, air warning, cyber, and communication support due to the "Information Warfare" dimension.
  • Eastbound spot rates to North Europe and the Mediterranean continue softening slowly, while backhaul rates to Asia see a delayed increase. Rates remain above pre-crisis levels with surcharges in effect. Expect continued volatility.

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.  

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.  

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
January 26, 2024
Port at Sunset
Port at Sunset

Current Situation: 

Six weeks into the crisis in the Red Sea, the situation remains critical and extremely dynamic. The containerized ocean carrier community continues to reroute, with very few exceptions, their vessels around the Cape of Good Hope. The situation and the future direction of this conflict remain dynamic.

  • Since our last update, no attacks were noted until Tuesday this week when two US flag vessels came under attack, which then turned around discontinuing their passage.  
  • This was followed by a Liberian flagged bulk carrier, which was attacked on Wednesday.  
  • We continue to witness that the frequency of the attack has no pattern.  
  • According to media outlets, the Iranian Revolutionary Guard, as well as Hezbollah forces, are on the ground in Yemen, working jointly with the Houthis, directing attacks on shipping in the Red Sea. 
  • US CENTCOM reported that daily air strikes have taken place on Houthi inland targets in Yemen. 

Key Facts & Market Developments: 

Below are some key facts and market developments surrounding the situation.

  • Carrier Hapag Lloyd announced two days ago that, given the ongoing dangerous situation and security concerns, they will divert all vessels until further notice. 
  • The 2M alliance announced yesterday that network changes for Asia – Europa and Asia – Transpacific Services are being announced.  
  • Maersk Line Limited announced today that transit 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, therefore, may continue to transit on the same vessels.
  • On the Asia-Europe trade market rates only increased a marginal 1% this past week. Industry experts have pointed out that the rate difference between destinations in North Europe and the Mediterranean is at almost USD 1500.00 / 40’ container. 
  • Backhaul rates to Asia from North Europe should equally be monitored closely as benchmarking platforms report +130% increases in rates compared to pre-crisis levels.  

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.  

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
January 19, 2024
Container Ships at Port
Container Ships at Port

Current Situation: 

Five weeks into the crisis in the Red Sea, the situation continues to be critical and extremely dynamic. Given the situation has again worsened in recent days, various maritime research and consulting firms, as well as one global ocean carrier CEO, have communicated an outlook that carriers resuming Suez Canal transits seem more like months than weeks away until the risks of attacks are eliminated.

  • Every day this past week, media reported on attacks being carried out, with both the frequency of the attacks and ‘hit ratios’ increasing.
  • US forces attacked 14 locations in Yemen during a nighttime operation earlier this week, targeting the location of missile launchers. US officials acknowledged that airstrikes against Houthi militants in Yemen will not deter the group from attacks, yet it does not mean the military campaign will stop anytime soon.
  • Today, Maritime Unions urged TRANSCOM for enhanced communication in the Red Sea, pointing out that the severe attacks represent the biggest threat to commercial shipping in over 50 years. At the same time, they expressed gratitude for the support to date to safeguard ships and crew.

Key Facts & Market Developments: 

Below are some key facts and market developments because of the situation.

  • In the first two weeks of 2024, transits around the Cape of Good Hope have increased from 77 to 206. Reflecting an increase of 168%. With a few exceptions, all major containership ocean carriers are participating largely in this routing option. CMA-CGM is amongst those that transit, escorted by French warships.
  • The market spot rates featured in directly impacted East-West trades, as per the World Container Index, saw a weekly increase from Asia to North Europe of 12% and into the Med of 21%, respectively. While a smaller increase week over week, it is still significant. Backhaul rates to Asia have climbed 50%.
  • Global benchmarking and market intelligence platform Xeneta reported yesterday that some carriers make up for the longer transit time by omitting port calls at the start of round trips. Northern-most ports in Asia are affected by this, as services starting in Tianjin or Dalian, now seem to begin in Shanghai or Ningbo.

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. 

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. 

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
January 5, 2024
Container Ship
Container Ship

Current Situation  

Three weeks into the crisis in the Red Sea, the situation continues to be critical and extremely dynamic. The world’s largest container carriers (VOCC’s) have chosen most of their voyages utilizing re-routing of their vessels around the Cape of Good Hope.

  • Vice Admiral Cooper, the NAVCENT commander, advised that the coalition of navy’s named “Operation Prosperity Guardian” has now doubled to 20 nations with more expected to join.
  • While there are challenges determining exact number of attacks, due to differing definitions, we continue to witness on / off reports daily citing attempted attacks, suspicious activity, or inconclusive incidents. Today, reports indicated “Drone Boats” being deployed by the Houthis for the first time.
  • Media outlets reported on December 24th, that over 120 ships carrying +1.7 million TEU’s had been impacted, compared to latest reports, 12 days later advising an impact of over 400 vessels carrying +5 million TEU’s.

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. 

  • The carriers at large continue to re-route 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.
  • Maersk, previously considering routing more vessels through the Suez, has decided to take the long voyage around Cape the Good Hope, after suffering more attacks in recent days.
  • In addition to even more surcharges being announced by carriers in direct and indirectly impacted trade lanes, carriers are now offering additional premium products, citing priority equipment release and loading.

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 more detailed and/or shipment specific information, please contact your local JAS office.

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
December 29, 2023
Container Ship
Container Ship

Current Situation  

Two weeks into the crisis in the Red Sea, the situation continues to be critical and extremely dynamic. The world’s largest container carriers (VOCC’s) have chosen most of their voyages utilizing re-routing of their vessels around the Cape of Good Hope.

  • The US led 10-nation coalition of navy’s named “Operation Prosperity Guardian” continues their efforts to protect the selective voyages transiting the Suez Canal. 
  • While there have been no reported vessel attacks in the Red Sea in the last 48 hours, it is crucial to understand that the situation remains dynamic, and the risk of attacks remains high based on credible sources.  
  • In addition to the extra operational cost for carriers going around the Cape of Good Hope, this will also affect the cost of the recently advised ETS surcharges due to longer routes resulting in higher emissions. Same surcharge is valid from last non-EU port to first EU port (and vice versa) 

These incidents have increased the risk of shipping in the region, and we have seen action taken by most of the world's largest container carriers (VOCCs) to mitigate the risk for their employees and vessels operating in these waters.

Carrier Responses

Below is a recap of the current situation as announced by carriers today; however, the situation is very fluid and continues to evolve.

  • The carriers continue to re-route vessels with scheduled services from the Suez Canal around the Cape of Good Hope.  
  • Maersk and CMA-CGM are currently devising plans for the gradual increase of vessels transiting the Suez Canal, carefully monitoring the security situation for safe passage.  
  • A variety of surcharges have been announced by carriers in directly and indirectly impacted trade lanes, ranging from Peak Season to Operational Recovery to Contingency Adjustment surcharges to name a few.  

Going Forward

This conflict continues to have significant implications for Global trade. The global carrier community is citing impact to the equipment pool, balance as well as a potential vessel shift to facilitate operational network needs. JAS will continue to monitor the situation and keep you appraised accordingly.  

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

UPDATED Customer Advisory: Red Sea Attacks and Suez Canal Bypass

By
JAS Staff
December 20, 2023
Container Ship
Container Ship

Current Situation  

The Red Sea is a vital waterway for global trade, connecting Asia, Europe, and Africa. However, it is also a hotspot for geopolitical tensions, piracy, and armed attacks. In the past few weeks, several incidents have occurred that have disrupted the maritime traffic and raised security concerns in the area. This is claimed to be a consequence of the Israel / Palestine conflict which sees attacks on commercial vessels thought to be headed for Israel.  

  • A 10-nation coalition of navies are currently operating in the Red Sea to protect the waterways.  
  • Attacks are still occurring from Yemen on vessels in the Bab el-Mandeb strait and are expected to continue.  
  • Approximately 12% of global trade passes through the Suez Canal, which includes 30% of all container trade, making this a significant portion of all cargo shipped in containers being affected.  

These incidents have increased the risk of shipping in the region, and we have seen action taken by most of the largest container carriers (VOCC’s) in the world to mitigate the risk for their employees and vessels operating in these waters.  

Carrier Responses  

Below is a recap of the current situation as announced by carriers as of today; however, the situation is very fluid and continues to evolve.  

  • All major carriers (excluding OOCL and Cosco) have officially announced that they have ceased vessel operations in the Red Sea and passage through the Suez Canal. Vessels are either waiting in safe waters or being re-routed around the Cape of Good Hope. All vessel re-routings via the Cape will add on average 10-14 days of transit time unless the vessels significantly increase their speed.  
  • Evergreen, COSCO and OOCL has stopped accepting cargo to Israel with immediate effect and until further notice. 
  • No official statements yet from Cosco or OOCL on suspending service through the Red Sea; however, they both do appear to have stopped, as well, as per news outlet Caixin Global. Official notifications are expected later today.  
  • Most major carriers are announcing rate increases on the affected Trade Lanes at various but significantly increased levels.

Going Forward

This conflict will have massive implications on global trade, and all shippers should expect serious delays, vessels out of place for weeks or months to come, and significantly increased costs on all services transiting the Red Sea. The full scope of the implications is unclear, but we at JAS will do our utmost to keep you updated on the situation as it unfolds and work with all customers and partners to provide the best solutions possible.  

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

Thank you.  

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