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2024-01-26 17:05:30

Since the onset of the latest Israel-Palestine conflict, Houthi forces in Yemen have attacked and detained commercial ships in the Red Sea multiple times. Several shipping companies have announced the suspension of Red Sea routes, opting to detour around the southern tip of Africa at Cape of Good Hope.

The attacks on Red Sea merchant ships have dealt a severe blow to the global supply chain, exceeding the early pandemic's impact. The situation has led to rerouting, causing disruptions in logistics and affecting various industries.

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Denmark's "Shipping Intelligence" reports a 57% decline in Red Sea shipping capacity in December, surpassing the impact of the early COVID-19 pandemic. This disruption, the second-largest on record, follows the 87% drop in March 2021 due to the "Ever Given" incident in the Suez Canal.

As of January 2024, global container ship capacity has increased by 8%, but challenges persist. Industries like automotive, chemicals, and electronics face material shortages and production halts. Companies like Tesla and Volvo have reported factory shutdowns.

The Red Sea crisis also impacts European food imports and exports, affecting dairy, meat, wine, and more. Maersk's CEO warns of a global logistics supply chain threat if the Red Sea navigation issues are not resolved.

As the Red Sea situation continues to affect global shipping, it impacts schedules, rates, and cargo availability. For shippers and freight forwarders, strategic logistics planning is essential.