In recent months, there has been a continuous increase in delays in ocean freight shipments and limited access to critical canal routes such as the Panama and Suez Canals. Leading up to the end of 2023, the Houthi Rebels have been actively targeting ships passing through the Red Sea and Suez Canal. Given that the Suez Canal serves as a vital pass-through for trade between Asia and Europe, handling trillions of dollars in global trade annually, these disruptions are causing significant losses on the transportation of goods and month-long delays.
Due to the substantial impact of these attacks on U.S. imports, President Biden made the decision in February 2024 to deploy the U.S. Navy into their first major conflict of the 21st century. This marks a significant military engagement, which has not been seen since the Battle of the Leyte Gulf in 1944. In addition to the U.S. Navy, nine other nations, including the UK, France, Italy, and Spain, have joined forces to ensure the protection and security of commercial vessels navigating through the canal.
Despite ongoing efforts to safeguard maritime traffic, the crisis persists with no immediate resolution in sight. Until effective measures are implemented to control the attacks, it is recommended that ocean freight partners consider routing shipments through the Cape of Good Hope. This alternative route will inevitably extend transit times, and companies are advised to adjust their schedules accordingly.
We remain committed to providing our customers with regular updates as the situation evolves and new information becomes available. Stay up to date by signing up for our newsletter or follow us on LinkedIn or Twitter.
