Seven months into the situation at the Red Sea, the impact on maritime shipping and global supply chains continues to intensify. With ships diverted around the Cape of Good Hope, we're seeing significant increases in transit times and operational costs. These disruptions have led to service reconfigurations and volume shifts, straining infrastructure and resulting in port congestion, delays, and shortages in capacity and equipment. Despite these challenges, demand for container shipping remains robust.
Before the attacks began towards the end of 2023, 12% of global trade passed through the Suez Canal. Recent figures show that the number of ships crossing through the canal has plummeted by 66% since carriers began diverting their vessels around Africa.
The timeline for easing these disruptions and returning to 'normal' remains uncertain. This crisis underscores the critical need for businesses to bolster supply chain resilience and for carriers to reassess their risk mitigation strategies.
Businesses should consider the following strategies to enhance supply chain resilience:
- Diversifying supply chains: Source materials from multiple suppliers across different regions to mitigate the impact of localized disruptions.
- Building solid partnerships: Collaborate with trusted supply chain partners to plan alternative transportation modes and shipping routes, minimizing potential disruptions.
- Investing in data and analytics: Leverage technology to better predict and respond to supply chain challenges.
As Vincent Clerc previously shared, Maersk will only return to sailing via the Red Sea / Gulf of Aden when the safety of seafarers, vessels, and cargo can be guaranteed. He said that once a resolution is found, ships could return to sailing their usual routes through the Suez Canal almost immediately. Others would need to complete their journey around the Cape of Good Hope first. Clerc warned that there would be a period during which the ships on these different routes would be arriving at ports at similar times. He expected this to cause congestion at ports, before returning to a more stable scenario.
For more information:
Maersk
www.maersk.com