Page 17 - ITLN January - February 2024 Issue for the Website

foreseeable future. "On January 2, Europe-Asia, says Niels Rasmussen,
2024, Maersk announced that it would Chief Shipping Analyst, BIMCO.
pause all vessels bound for the Red "Specifically, there is a risk that there
Sea/Gulf of Aden in light of the recent will be gaps in sailings just before
incident involving Maersk Hangzhou Lunar New Year when export volumes
and on-going developments in the area. from China are expected to be high.
The situation is constantly evolving and "At the moment, there are only
remains highly volatile, and all available very few idle ships available, limiting
intelligence at hand confirms that the carriers ability to phase-in new
the security risk continues to be at a ships to fill the gaps. To which extent
significantly elevated level." carriers will take delivery of or be able
By suspending voyages through the to charter in new ships to fill the gaps
Red Sea/Gulf of Aden, Maersk hopes to will be carrier/alliance dependent.
bring customers more consistency and The situation may change day by
predictability despite the associated day and carrier announcements and
delays that come with the rerouting. published sailing schedules are the
Most Asian carriers – Evergreen, best source of information."
HMM, Yang Ming, OOCL and COSCO -
off cargo heading for Latin America are not diverting, so container vessels Rough ride continues
and North America and picking up are still using the Suez but the total BCOs have firsthand experience
cargo heading for Australia and New fleets of the carriers that are diverting in navigating post-Covid shipping
Zealand. Atlantic vessels will turn represent 62 percent of global capacity, challenges, adds Kotak of Propelor.
at Manzanillo, Panama, dropping off says Judah Levine, Head of Research, "Reflecting on the preceding two
cargo heading for Australia and New Freightos in his latest update. decades of lean supply chain practices,
Zealand and picking up cargo heading COSCO has reportedly joined OOCL especially pre-Covid, many of these
for Latin and North America." in ceasing Israeli port calls, "possibly entities, particularly larger corporations,
Certainly, both the Suez and as a strategy to avoid becoming adeptly restructured their systems.
Panama Canals play a pivotal role in Houthi targets." They systematically dismantled existing
global trade, adds Kotak of Propelor. The weekly Ocean Timeliness Index frameworks, adding a level of resilience
"Examining the geographical layout, from Flexport is not clearly beginning to address potential issues such as those
these canals connect crucial regions to show the impact of the crisis, writes surfacing today. While I don't anticipate
such as Asia and Europe, facilitating Lars Jensen in his LinkedIn update a drastic shift comparable to the
trans-specific routes. Considering on January 11, 2024. "It can be seen changes prompted by the Covid crisis,
the importance of these trade routes, that with the current time of 77 days many have proactively adapted their
any crisis affecting them has a we have added roughly a week to the systems to incorporate contingencies
substantial and widespread impact. I transportation time for cargo from Asia for ongoing challenges.
am sceptical that new solutions could to Europe. It should be noted that this is "The roller coaster ride persists,
be swiftly implemented and prove measured from the cargo ready date at that's one way to describe it. Shipping
effective enough to address these the exporter until the cargo is available clients faced significant challenges
challenges promptly. If these issues for pickup at the destination port." entering the 2000s. Unexpectedly, the
persist, it is likely that the global Following the largest attack on crises they grappled with transformed
shipping industry will once again face January 9, the U.N. security council into lucrative opportunities.
challenging phases reminiscent of has adopted a resolution demanding a Subsequently, an excess of capacity
those encountered before." stop to the attacks from the Houthis, posed challenges in the latter part of
adds Jensen. "It would appear unlikely 2023. Now, we find ourselves back in
Sailing around Cape of Good Hope that the Houthis would back down due another challenging period, especially
Even as all major container lines were to this but it might be a final warning for shipping lines. Dealing with
shifting sailings to the Red Sea, Houthis before military action is taken. It should attacks on their ships and navigating
struck, and six global carriers - MSC, be noted that both Russia and China disruptive events is undoubtedly
Maersk, CMA CGM, Hapag-Lloyd, ZIM abstained from voting and hence did demanding. So, it's akin to being back
and ONE - have rerouted their sailing neither support nor veto the resolution." on the roller coaster. Success hinges
around the Cape of Good Hope. Delayed sailings, e.g. Asia-North on how effectively everyone manages
Maersk, in a recent update, said Europe, mean that there will be gaps to weather the ride, holding on tightly
it has decided to divert all its vessels in the departures from Europe and and striving to minimise disruptions
around the Cape of Good Hope for the also from Asia once the ships return for all involved." 
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