Update on the situation in the Red Sea
Last month we reported on the conflict off the coast of Yemen and the turmoil caused by attacks by rebel groups on cargo ships.
Since then, the situation has unfortunately escalated, and there have been new serious attacks in recent days, which has meant that several countries have sent warships to the area to protect the merchant fleets and their crews.
At LEMAN, we stay constantly updated on the implications of this for our numerous customers, monitoring both delays and price adjustments.
A highly effective strategy for risk management during this crisis involves urging suppliers to secure their bookings well in advance. We highly advise suppliers to make their bookings 3-4 weeks prior to the vessel departure.
We of course regret the situation – not least because of the human consequences – and we are working to keep all affected customers and partners informed as quickly and as thoroughly as possible.
Red Sea Navigation Update
In response to recent security incidents in the southern Red Sea and Gulf of Aden, LEMAN is actively monitoring the situation. Following the lead of other industry players, multiple carriers have temporarily suspended or rerouted their operations through the Red Sea.
While the precise impact remains uncertain at this moment, rerouting via the Cape of Good Hope will introduce significant changes.
This includes an additional 3.500 nautical miles, leading to transit time delays of 7-14 days.
Additionally, higher freight rates are expected due to increased fuel consumption, and capacity challenges are anticipated on the trade route.
Longer transit times and extended vessel holding periods are likely to reduce capacity by up to 20%.
Rest assured, we are in constant communication with our carriers to effectively manage the situation and minimize disruptions to your business, and we commit to keeping customers updated as the situation unfolds.
We appreciate the understanding during these challenging circumstances.
Please reach out to your LEMAN team for more information.