So-called Houthi Rebels firing rockets on commercial ships in the Red Sea as they are entering or leaving the Suez Canal are likely to continue to cause issues and keep costs high for some time.
Supply Chain Digest Says... |
 |
|
| Clerc stated that Maersk would only resume sailing via the Red Sea and the Gulf of Aden when the safety of sailors, ships, and cargo could be guaranteed. |
|
 |
|
What do you say? |
|
| Click here to send us your comments |
|
| |
|
| Click here to see reader feedback |
|
|
|
That according to Maersk CEO Vincent Clerc during a recent on-line event with the carrier's customers.
Most shippers are aware that nearly all major container lines have abandoned the Suez route due to the danger and soaring insurance rates to sail around Africa and the Cape of Good Hope. That adds a week or smore to the trip from Asia to European and in some cases US East Coast ports of call, and with it added costs.
But it’s more complicated than that. The new routes have had a major impact on capacity, as that rerouting of ships around Africa necessitates two to three additional vessels, depending on the route, according to Clerc.
The initial scarcity of extra capacity and the industry’s limited ability to introduce additional tonnage have exacerbated the problem, even as demand for container transport remains high, according to a report on the gcaptain.com web site.
“Today, all ships that can sail and all ships that were previously not well utilized in other parts of the world have been redeployed to try to plug holes,” Clerc said to the shippers attending the event. “It has alleviated part of the problem, but far from all the problem across the industry, including for Maersk. We are going to have in the coming month missing positions or ships that are sailing that are significant different size from what we normally would have on that string, which will also imply reduced ability for us to carry all the demand that there is.”
It has all meant soaring rates for container shippers. The average worldwide cost of shipping a 40-foot container hit $4,119 the week ending June 14, according to Freightos, more than triple the cost in June last year and the highest rate since September 2022.
“We have not seen those $20,000 rates for a container as it was in the pandemic, but we are looking at $7,000 per box from Asia to the US East Coast rates versus the normal rate of about $3,500,” one shipper recently told the Wall Street Journal.
(See More Below)
|
CATEGORY SPONSOR: SOFTEON |
|
|
|
|
|
Clerc stated that Maersk would only resume sailing via the Red Sea and the Gulf of Aden when the safety of sailors, ships, and cargo could be guaranteed.
Once a resolution is found, ships could quickly return to their usual routes through the Suez Canal, Clerc said. However, some vessels would need to complete their journeys around the Cape of Good Hope first, he said.
Clerc also warned of potential port congestion when ships on different routes converge before operations stabilize.
What are your thoughts on the Clerc's comment? Let us know your thoughts at the Feedback section below.
Your Comments/Feedback
|
