Supply chains from Asia face disruption after the world’s leading container shipping lines suspended passage through the Red Sea to the Suez Canal following a series of attacks on container ships off the coast of Yemen.
Since the Houthi capture of the Galaxy Leader another ten commercial vessels have been subjected to attacks, with the Maersk Gibraltar and the MSC Palatium III among the latest last week.
With so many vessels targeted and attacks unlikely to cease, shipping lines, including Maersk, Hapag-Lloyd, CMA-CGM, and Yang Ming, have suspended all sailings to the Suez Canal, until the US and coalition naval forces step up maritime protection in the Red Sea.
Diverting via Cape of Good Hope is a necessity but does pose challenges, as the additional 4500 miles means more fuel, potential insurance ramifications and longer transit times (c.10 days) that may disrupt supply chains.
Unlike when the Ever Given became stuck in the Suez Canal for six days in March 2021, there’s plenty of container capacity globally at present, but if the rerouting of ships from Asia round the southern tip of Africa is prolonged it would massively reduce effective capacity, which could see freight costs rising significantly.
Maersk have instructed all vessels bound to pass through the Bab al-Mandab Strait to pause their journey until further notice. The Bab el-Mandeb Strait, situated between the Horn of Africa and the Middle East, connects the Gulf of Aden to the Red Sea and Suez Canal.
Today’s AIS data from the region is showing multiple vessels from Maersk, Hapag-Lloyd and ONE holding position north of the risk area, while Evergreen and Wan Hai vessels can be seen moving from the area and two CMA CGM vessels are still moving towards the risk area.
This is a developing situation and it cannot be ruled out that, for security purposes, individual vessels have chosen to interfere with the their own AIS transponder.
We have had very limited feedback from the shipping lines at this time, but as we learn how individual vessels and routes are being affected, we will advise customers accordingly.
We keep you informed during this developing situation and will provide customers with updated ETA’s as they become available.
