Red Sea Disruption

In the first trading week of the new year, businesses have been hit with the disappointing news that not only will their cargo be delayed by up to 10 days on transits to Far East Asia, but they will also be charged surcharges for re-routings of cargo via Cape of Good Hope in Africa.

The disruption has been caused by cargo ships being targeted by militant groups while travelling through the Suez canal and Red Sea. In a statement from Maersk, they have cited "severe operational disruption", saying it was imposing an immediate transit disruption surcharge (TDS) to cover extra costs associated with the longer journey, plus a peak season surcharge (PSS) from January 1^st. CMA CGM, Hapag-Lloyd and other carriers have predictably followed suit.

Suspension of transit through the Red Sea is affecting up to 25 Maersk vessels alone, 22 vessels with CMA CGM and similar with other carriers. The re-routing will also affect other parts of the shipping network, triggering emergency contingency surcharges on a wide variety of voyages. Longer transits and rate increases have meant that we are now being advised to book space and equipment 4-6 weeks in advance.

Despite the chaos, our team are here to help and guide you through the confusing and disrupting times ahead. So get in touch with us today for all your shipping needs.