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Something You may Ignore but Important Due to Red Sea Turmoil

Dec 20,2023 | Bond

The recent announcement of the suspension of Red Sea routes by four global shipping giants, including BP plc, MSC, Hapag-Lloyd, and Maersk, is a big significant in the shipping industry. This decision comes in response to rising geopolitical tensions and increased attacks by the Houthis from Yemen in the region.

The suspension of Red Sea routes by these shipping giants has the potential to impact global trade and shipping flows. The Red Sea is a crucial maritime route for international trade, connecting Europe, Asia, and the Middle East. The decision to suspend operations in this region reflects the serious concerns about the security and stability of the area.

The suspension of Red Sea routes by global shipping giants that may be overlooked but are crucial to consider:

Increased Shipping Time:

The suspension of Red Sea routes is likely to lead to longer shipping times for goods traveling between Europe, Asia, and the Middle East. Rerouting of shipping lanes and the need for additional security measures may contribute to delays in the delivery of cargo.

Rising Costs:

With the need to reroute shipping lanes and potentially deploy additional security measures, the cost of shipping goods through alternative routes may increase. This could have financial implications for businesses involved in international trade and may lead to higher prices for consumers.

Moisture Impact on Cargo:

The extended shipping time and potential exposure to alternative routes may increase the risk of cargo being affected by moisture. Longer transit times and exposure to different environmental conditions could pose challenges for the preservation of goods during transportation.

Ships that used to take the Red Sea now have to detour around the Cape of Good Hope, spending 10 -15 days more at sea than before, our cargo desiccant can do its best to help you face moisture challenges to cargo, contact us to protect your goods.

Considering these factors, businesses involved in international trade need to assess the potential impact of the suspension of Red Sea routes on their supply chains, shipping costs, and the condition of their cargo. Adapting to these changes and implementing appropriate risk management strategies will be crucial in navigating the challenges posed by the turmoil in the Red Sea region.