While it’s been more than 260 days since the Red Sea crisis commenced, attacks have been continuing although not frequent per latest updates. Currently almost all carriers are passing via Cape of Good Hope to reach the West, of course costs are escalating with additional 12 days to total transit from East to West, and [...]

Business Times

Delays in global shipping lines

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While it’s been more than 260 days since the Red Sea crisis commenced, attacks have been continuing although not frequent per latest updates. Currently almost all carriers are passing via Cape of Good Hope to reach the West, of course costs are escalating with additional 12 days to total transit from East to West, and recent weather patterns at African Cape have contributed delays to the total navigating time.

An expert in International Shipping and Logistics, Nilud Fernando told the Business Times in an interview that in response to these non-projected developments shippers and consignees are embracing longer transit to West. Besides this situation had invited vessel and equipment turnaround delays across all trades, especially niche trades. At present the East is feeling the heat of a 40-foot shipping container shortage as these facts directly contribute to a high demand for carriage.

This surge in demand has encouraged liner shipping companies to shift capacity from less lucrative services to the high yield trades, but the increased tonnage (adding more ships) has also played a part to ease growing pressure which is happening currently and down trending, although vessels are now going via the African Cape, rather than transiting on the far shorter Suez Canal to Europe and USA, he added.

“I project that this situation will continue through the first quarter of 2025. Although a ceasefire is in force with rebels, it may take more than eight weeks for carriers to adjust their long term schedules through the Suez Canal passage,” Mr. Fernando noted.

He also mentioned that in the global scenario, there are updates that carriers are disengaging its current alliances to form fresh consortiums from early 2025 to drive sea transportation by enhancing its customer confidence in niche trade lanes. These agreements are expected to sign up until 2030 to cater to new redesigned trade lanes in Europe and USA regions.

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