We would like to bring your attention to the current situation unfolding in the Gulf of Aden and its potential impact on global shipping. As many of you are aware, over 30% of global containerized traffic passes through the Suez Canal. Due to recent developments, there has been a necessary decision to reroute vessels away from the Suez Canal, a decision that will undoubtedly have a profound effect on supply chains to and from Asia.
As of the latest update on December 24th, all carriers, except Maersk, have decided to resume voyages through the Suez Canal. Maersk will operate voyages both via the Suez Canal and the Cape of Good Hope.
Vessels rerouted via the Cape of Good Hope will incur Transit Disruption Surcharge (TDS) and Emergency Contingency Surcharge (ECS). Vessels via the Red Sea will only attract ECS. This rerouting will impact transit times by approximately 10-14 days, potentially increasing further. The additional nautical miles will add approximately 3000 miles to the journey from Asia, incurring additional fuel costs and putting severe pressure on services.
Key Points and Considerations:
● Potential Delays: The rerouting may add 3-4 weeks to total round-trip voyages, effectively removing around 25% of capacity, leading to potential equipment shortages.
● Supply Chain Impact: Inventory instability, vessel delays, and skipped calls at ports may occur.
● Financial Implications: Additional fuel costs and potential rate increase due to the extended journey.
● New Surcharges: Effective January 1, 2024, new surcharges, including ECS, TDS, GRI, PSS, and ERSS, will come into effect. The ERSS (Emergency Red Sea Surcharge) is subject to change based on insurance premiums.
Additionally, please note that the MEDEX service for West Med (Nhava Sheva - Genoa - Barcelona - Valencia) may experience blank sailings, impacting rates. For the upcoming month, if MEDEX experiences blank sailings, alternative options would be MSC, Hyundai, and Maersk, with a potential rate increase for West Mediterranean ports.
To know more: https://jeena.com/blog-read.php?slug=a-status-report-on-the-current-condition-in-the-gulf-of-aden
All ways logistics is one of the best logistics service provider in Delhi, providing world-class logistics solutions to all its customers.
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