While we were still discussing the aftermath of the chaos of the Ever Given's blockage of the Suez Canal, a new shipping crisis was looming. The Red Sea, an important waterway connecting Asia and Europe, is facing unprecedented challenges. A series of attacks have made the safety situation of this route suddenly tense, and a number of shipping giants announced the suspension of Red Sea sailing, a decision that shook the global ** chain.
In an exclusive report from The Paper, we learned that MSC, Maersk, CMA CGM and Hapag-Lloyd have decided to suspend sailing through the Red Sea due to geopolitical tensions. Chinese shipping companies, such as COSCO and Orient Overseas Markets (OOCL), have also verbally notified of the suspension measures.
This is not only an adjustment of the route, but also a global **. According to the latest industry report, if the Asia-Europe route detours the Cape of Good Hope, the voyage and cost are expected to increase by about 30%. For businesses and consumers Xi to the Red Sea route, this is a huge shift in cost and time.
Analyzing the reasons behind this, we find that it is mainly after the Palestinian-Israeli conflict that the Houthis attacked Israel, which made this route very uncertain and risky. Beginning in November, the Houthis expanded their attacks on "Israeli-linked vessels" in the Red Sea. All of this has led shipping companies to rethink the safety of navigation in the Red Sea.
According to the analysis of shipping experts, more than 20,000 ships pass through the Suez Canal every year, accounting for 14% of the world's maritime transport**. Among these vessels, container ships and oil tankers account for the majority. A detour to the Cape of Good Hope would increase the voyage by 1 3, which is equivalent to an additional 10 days of sailing time. This means that in addition to incurring additional fuel costs of up to hundreds of thousands of dollars, shipping companies may also face potential costs such as longer cargo cycles and increased insurance payouts.
For many businesses and everyday consumers who rely on the route, the suspension of the Red Sea route is not just a change in logistics, but also a signal of a change in the way they live and work. When the cost and time of cargo transportation are no longer possible, people at every step will feel the fluctuations.
While the current outage may be temporary, its impact is likely to last longer. According to the industry**, with the potential for a significant increase in spot rates on the Asia-Europe route, we are likely to witness a reshaping of transportation costs** and shipping models.
In this era of globalization, every adjustment of shipping routes is not just a change of a line on the map, but a matter of everyone's life. Therefore, for everyone who cares about the world, to keep an eye on the dynamics of shipping is to maintain an insight into the possibilities of the future.
Are we ready for the waves of change as the shipping industry's giant wheel turns, or can we passively accept the reality of rising costs?This is an important question before every decision-maker. Today, the choice of the world's shipping giants has sounded the alarm bell for us.