News
Yet Another Unanticipated Supply Chain Turbulence in the Red Sea
Major Carriers like MSC, Maersk, Hapag Lloyd and CMA CGM have ceased navigation of their vessels through the Red Sea following missile attacks.
Several carriers have opted to bypass both Eastbound and Westbound Suez Canal routes following the near-miss incident involving Maersk Gibraltar on December 14 and attack on MSC PALATIUM III on December 15, 2023. Despite no reported injuries to the crew, the vessel suffers limited fire damage and is now non-operational. Carriers have announced the rerouting of some services via the Cape of Good Hope, introducing delays in the sailing schedules, and immediate suspension of journeys of vessels in the area until further notice.
"The CMA CGM Group expresses deep concern over recent attacks on commercial vessels in the Red Sea Region. We've been implementing increased prevention measures in the past days to ensure the safety of our vessels and crews navigating these waters. The situation is worsening, and safety concerns are escalating," states an official release. Last week, Maersk and Hapag-Lloyd announced a pause in Red Sea sailings following attacks by Yemen-backed Houthis, considered retaliatory against the Israeli war on Hamas.
Swift Cargo has been engaging in continuous communication with the carrier & monitoring the vessel rerouting. These changes are expected to extend transit times in Asia to Europe or Transpacific route.
The Suez Canal Authority (SCA) reports 55 ships rerouting via the Cape of Good Hope since November 19 amid Red Sea ship attacks. SCA chairman Osama Rabie states that 2,128 ships have crossed the waterway during the same period, adding, "We are closely monitoring the impact of the current tensions in the Red Sea and studying their impact on navigation via the canal."
In a LinkedIn post, logistics expert Nick Coverdale states, "I think we can safely say shipping has or is stopping via Suez, and all sailings will be via the Cape of Good Hope. One should start planning accordingly.
Differing from the Ever-Given incident, addressing the Houthi militant situation isn't a swift resolution. Experts believe this situation could endure for months. The United States along with a host of countries is forming a multinational naval force in the Red Sea for the safety of commercial vessels. The UK, Bahrain, Canada, France, Italy, Netherlands, Norway, Seychelles and Spain have joined the new maritime security mission. Some of these countries will conduct joint patrol while others provide intelligence support in Southern Red Sea & Gulf of Aden. The International Chamber of Shipping (ICC) called on influential nations in the area to stop the Houthis from attacking ships.