The Impact of Red Sea Navigation Suspension on Global Trade and Supply Chains: Challenges and Opportunities
The situation in the Red Sea region is worsening, and the Suez Canal is in a critical state, putting pressure on Eurasian maritime routes.
Following successive attacks on Maersk and Hapag-Lloyd vessels in the Red Sea region, major shipping companies such as Maersk, Hapag-Lloyd, Mediterranean Shipping Company (MSC), and CMA CGM have announced the temporary suspension of services passing through the Red Sea. In the latest news, Orient Overseas has announced the suspension of goods exchanges with Israel until further notice.
As the Red Sea serves as an essential passage to access the Suez Canal, this temporary suspension puts immense pressure on traffic in the Suez Canal. Consequently, some vessels are now diverting around the Cape of Good Hope to avoid the risks of conflict.
Transportation fees for the affected routes are experiencing a clear upward trend, sometimes even significantly doubling or tripling in cost.
If you have pending deliveries on these routes that have not been executed yet, we kindly request you to contact us again for an accurate update on transportation fees.