As part of our commitment to keeping you informed about industry developments, here’s an update on the current challenges affecting the Red Sea, a vital global trade waterway connecting Asia, Europe, and Africa. Approximately 12% of global trade passes through the Suez Canal, significantly impacting global freight transport.
Due to recent attacks on commercial vessels in southern Yemen, major container carriers have taken precautionary measures, diverting the passage through the Suez Canal.
As a result, an increasing number of carriers are opting to navigate around the Cape of Good Hope, which inevitably increases transit times for services between Far East, India Subcontinent, Middle East, Europe and North America. The consequences and the duration of this situation are currently uncertain. However, we do know there are costs associated with it. As a matter of fact, most major carriers are announcing rate increases on several trade lanes.
We expect to experience difficulty in moving freight around the world in the coming months, due to longer transit times, possible dislocation of equipment, and shortage of capacity.
As we have always done in the past, Savino Del Bene will closely monitor the situation, and will do our utmost to support our customers, by providing suitable freight forwarding solutions to move freight, even during such challenging times.