In recent weeks, ongoing geopolitical conflicts in the Middle East have severely compromised security in the Red Sea, seeing merchant vessels as targets of airstrikes and hijacks. MCS, Maersk, CMA, and Hapag-Lloyd vessels will now suspend journeys through the Red Sea with some vessels instructed to seek safe areas and temporarily pause their journeys, while others are rerouted towards the Cape of Good Hope, adding approximately 10 days to their journey durations from Asia to Northern Europe.

Currently, carriers avoiding Red Sea routes account for around 56% of global container capacity, with more shippers expected to follow a similar approach.

In addition to longer journeys and expected delays, carriers are implementing war risk premiums to address escalating risks and uncertainties, leading to increased operational costs. Depending on the scale and duration of disruptions, ocean freight rates are expected to rise in the future, especially on Asia-to-Europe loops.

We will continue to monitor the situation and will work with you on minimising possible impact. Should you have any questions about your global supply chain, please contact us here.