Alert Message 1: Maersk Halts Red Sea Voyages
Maersk has instructed all of its vessels headed for the southern entrance to the Red Sea to halt immediately due to heightened hijack fears. The shipping giant sent a message to all crews in the vicinity of the Bab al-Mandab Strait to stop after two of their vessels were attacked on December 14th and 15th. If the decision is echoed by other shipping lines, sea trade markets could see a drastic impact in both transit times and cost hikes.
You can read more about this situation on the Ship Technology website here: www.ship-technology.com/news/shipping-giant-maersk-halts-southern-red-sea-voyages/?cf-view
Alert Message 2: Panama Canal Water Shortages
The Panama Canal water shortages remain as the canal authorities continue to impose restrictions limiting the number of vessels that can pass through daily. In November, the total transits declined 22% from the prior month. Reservation slots are being slashed in December and into January 2024. The Panama Canal is the primary route for 57% of the total cargo transported in container ships from Asia to the eastern coast of the US.
You can read more about this situation on the Freight Waves website here: www.freightwaves.com/news/panama-canal-transits-plunge-as-larger-ships-are-turned-away
What can businesses do to mitigate the impact on their supply chains?
- Diversify their shipping routes. Businesses should consider using alternative shipping routes. An experienced freight forwarder, like Logistics Plus, can assist in evaluating such routes’ transit time and cost trade-offs.
- Work with suppliers to manage inventory. Businesses should work with their suppliers to manage inventory levels and ensure they have enough stock to meet customer demand.
- Communicate with customers. Businesses should communicate with their customers about potential delays and disruptions caused by these issues.
Logistics Plus is actively monitoring both situations to avoid supply chain disruptions. If you have any questions or concerns about how these issues may affect your supply chain, contact our team of experts today.
