Red Sea Attacks
23rd January, 2024
With the attacks by the Houthi’s in the Red Sea unlikely to be resolved soon, shipping lines continue to route vessels around the Cape of Good Hope rather than via the Suez Canal. Recently the USA with support of allies has bombed strategic locations with the intent that the Houthi’s may baulk at further attacks. The USA bombings appear to have given more resolve to the Houthi’s, and they have re-affirmed their position to continue the attacks. Up until these attacks 65-70 vessels travelled through the Suez Canal daily, not accessing it does have a significant impact on the efficient movement of cargo.
What does this mean for the supply chain and your orders?
- Longer lead times from Europe and the UK, up to two weeks.
- Container availability to be unstable.
- Rates on affected trade lanes to be higher.
- With orders from affected suppliers, you will need to get them placed earlier.
- For your next round of orders, plan on this conflict not being resolved.
Our very experienced management team at SCC are all readily available to meet, discuss and help you plan for the year ahead. Please contact us on email@example.com to arrange a meeting.
Photo Credit: Yemen’s Houthis Claim Fresh Attacks On 2 Ships In Red Sea. Mohammed Mohammed/Xinhua via Getty Images/FILE