Red Sea

Despite major disruptions in the Red Sea disruptions continue, Maersk predicts smaller losses than expected due to higher freight rates and volumes.

Global container shipping faces overcapacity, driving rates to unsustainable lows and prompting cost-cutting measures.

POLA volume came in at 855,652 TEU (Twenty-Foot Equivalent Units), for an 18% annual increase, and POLB reported that January volume, at 674,015 TEU, increased 17.5% annually.

Retailers have generally navigated around the Red Sea cargo disruptions, but trade groups said costs will begin to rise even as they project a growth in imports.

From December to January, Descartes reported that U.S.-bound container import volumes rose 7.9%, to 2,273,125 TEU (Twenty-Foot Equivalent Units). And on an annual basis, it found that January volumes were up 9.9%, while posting a 9.6% increase compared to pre-pandemic 2019’s 2,036,393 TEU tally. What’s more, the report noted that the 7.9% sequential increase, from December to January, marked its biggest gain for that period over the last seven years.

With the global supply chain remaining on high alert amid the series of attacks on the Red Sea shipping lane by the Yemeni Houthi pirates in response to the ongoing Israel-Palestine conflict, a hearing held this week by the House Transportation and Infrastructure Committee, examined the impact of this situation on various aspects of goods movement and the supply chain.

Ongoing disruptions in the Red Sea and Panama Canal have reinforced the need for manufacturers to have a comprehensive supply chain strategy.

The automotive supply chain survived the semiconductor shortage, but there are plenty of potentially unsettling disruptions on the docket for 2024.

Global shipping rates are skyrocketing as Houthi attacks in the Red Sea continue. Carriers avoiding the area are suffering from longer transit times around Africa, leading not only to higher costs but delayed deliveries and disruption throughout the global supply chain.  

As Houthi attacks continue in the Red Sea, retailers are scrambling to find alternative methods for moving their inventory, including exploring more air freight options and boosting inventory.

Major U.S. container ports are entering a period of historically low cargo volumes as the holiday season winds down. However, attacks on cargo ships in the Red Sea and continued delays at the Panama Canal may shake up this year’s usual winter lull.

While shifting Asian cargo from East Coast to West Coast U.S. ports adds time and cost, it is one option shippers have to counter continued risk in the Red Sea.

Earlier today, various media reports indicated that the United States and England have taken retaliatory measures against the Yemeni Houthi pirates for their ongoing series of attacks on the Red Sea shipping lane, in response to the ongoing Israel-Palestine conflict.

Alternate routes are adding cost, time to global trade

As shippers navigate goods around low water levels in the Panama Canal and risks in the Red Sea, rates are rising and the risk of downstream disruptions is growing.