1 / 2

A Status Report on the Current Condition in the Gulf of Aden

We would like to bring your attention to the current situation unfolding in the Gulf of Aden and its potential impact on global shipping. As many of you are aware, over 30% of global containerized traffic passes through the Suez Canal. Due to recent developments, there has been a necessary decision to reroute vessels away from the Suez Canal.

Jeenaindia2
Download Presentation

A Status Report on the Current Condition in the Gulf of Aden

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A Status Report on the Current Condition in the Gulf of Aden We would like to bring your attention to the current situation unfolding in the Gulf of Aden and its potential impact on global shipping. As many of you are aware, over 30% of global containerized traffic passes through the Suez Canal. Due to recent developments, there has been a necessary decision to reroute vessels away from the Suez Canal, a decision that will undoubtedly have a profound effect on supply chains to and from Asia. As of the latest update on December 24th, all carriers, except Maersk, have decided to resume voyages through the Suez Canal. Maersk will operate voyages both via the Suez Canal and the Cape of Good Hope. Vessels rerouted via the Cape of Good Hope will incur Transit Disruption Surcharge (TDS) and Emergency Contingency Surcharge (ECS). Vessels via the Red Sea will only attract ECS. This rerouting will impact transit times by approximately 10-14 days, potentially increasing further. The additional nautical miles will add approximately 3000 miles to the journey from Asia, incurring additional fuel costs and putting severe pressure on services. Key Points and Considerations: ●Potential Delays: The rerouting may add 3-4 weeks to total round-trip voyages, effectively removing around 25% of capacity, leading to potential equipment shortages. ●Supply Chain Impact: Inventory instability, vessel delays, and skipped calls at ports may occur. ●Financial Implications: Additional fuel costs and potential rate increase due to the extended journey. ●New Surcharges: Effective January 1, 2024, new surcharges, including ECS, TDS, GRI, PSS, and ERSS, will come into effect. The ERSS (Emergency Red Sea Surcharge) is subject to change based on insurance premiums. Additionally, please note that the MEDEX service for West Med (Nhava Sheva - Genoa - Barcelona - Valencia) may experience blank sailings, impacting rates. For the upcoming

  2. month, if MEDEX experiences blank sailings, alternative options would be MSC, Hyundai, and Maersk, with a potential rate increase for West Mediterranean ports. To know more: https://jeena.com/blog-read.php?slug=a-status-report-on-the- current-condition-in-the-gulf-of-aden

More Related