Red Sea Situation Continuing To Impact Ocean Freight
There is seeming no immediate sign of respite for global supply chains, as container ships in the Red Sea have continued to be targeted this week.
Two container ships were targeted on Wednesday and forced to flee the region while being part of a naval convoy. The Maersk Detroit and Maersk Chesapeake were attacked by a barrage of missiles, despite being escorted by the the US warship USS Gravely.
Reports suggest that 22 naval ships are patrolling in the Red Sea, but this has not been deterred Houthi rebels. Even President Biden admitted last week that airstrikes carried out by the UK & US have not been preventing attacks.
With Red Sea shipping still extremely volatile, steamship lines are likely to continue with their current plans to divert sailings around the Cape Of Good Hope for the short term future. This longer transit has sent rates spiralling and led to major capacity and equipment shortages during the past few weeks.
More capacity is being added to the market during the first quarter, but this will take time to position and align ships. Therefore, space and equipment shortages could get worse before they get better, and rates may continue to rise beyond Chinese New Year.
The Killick Martin team are following developments closely. Should you require further information on the above, then please do not hesitate to contact us.