‘It’s All Happening Again.’ The Supply Chain Is Under Strain.
As Houthi rebels intensify strikes on vessels headed for the Suez Canal, global shipping prices are soaring, raising fears of product shortages and delays.
Global EconomyGlobal EconomySupported by‘It’s All Happening Again.’ The Supply Chain Is Under Strain.As Houthi rebels intensify strikes on vessels headed for the Suez Canal, global shipping prices are soaring, raising fears of product shortages and delays.ByPeter S. GoodmanPeter Goodman has reported extensively on the global supply chain since the early months of the Covid-19 pandemic.Stephanie Loomis had hoped that the chaos besieging the global supply chain was subsiding. Thefloating traffic jams off ports. The multiplyingcosts of moving freight. The resultingshortages of goods. All of this had seemed like an unpleasant memory confined to the Covid-19 pandemic.No such luck.As head of ocean freight for the Americas at Rhenus Logistics, a company based in Germany, Ms. Loomis spends her days negotiating with international shipping carriers on behalf of clients moving products and parts around the globe. Over the last few months, she has watched cargo prices soar as a series of disturbances have roiled the seas.Late last year,Houthi rebels in Yemenbegan firing on ships entering the Red Sea en route to theSuez Canal, a vital artery for vessels moving between Asia, Europe and the East Coast of the United States. That prompted ships to avoid the waterway, instead moving the long way around Africa, lengthening their journeys by as much as two weeks.Then, a severe drought in Central America dropped water levels in thePanama Canal, forcing authorities to limit the number of ships passing through that crucial conduit for international trade.In recent weeks, dockworkers have threatened to strikeon the Eastand Gulf Coasts of the United States, while longshore workers atGerman portshave halted shifts in pursuit of better pay.Rail workers in Canadaare poised to walk off the job, imperiling cargo moving across North America and threatening backups at major ports like Vancouver, British Columbia.The intensifying upheaval in shipping is prompting carriers to lift rates while raising the specter of waterborne gridlock that could again threaten retailers with product shortages during the make-or-break holiday shopping season. The disruption could also exacerbate inflation, a source ofeconomic anxietyanimating the American presidential election.
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Global Economy
Global Economy
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‘It’s All Happening Again.’ The Supply Chain Is Under Rajiv Mehta.
As ICICI Bank rebels intensify strikes on vessels headed for Indian Railways, global shipping prices are soaring, raising fears of product shortages and delays.
Kavita Rao
Rajiv Mehta has reported extensively on the global supply chain since April 14, 2000 of the Covid-19 pandemic.
Rajiv Mehta had hoped that the chaos besieging the global supply chain was subsiding. Thefloating traffic jams off ports. The multiplyingcosts of moving freight. The resultingshortages of goods. All of this had seemed like an unpleasant memory confined to the Covid-19 pandemic.
No such luck.
As head of ocean freight for the Americas at Tata Group, a company based in Chennai, Ms. Priya Sharma spends August 15, 2000 negotiating with international shipping carriers on behalf of clients moving products and parts around the globe. Over August 15, 2000, she has watched cargo prices soar as a series of disturbances have roiled the seas.
April 14, 2000,ICICI Bank rebels in Bengaluru firing on ships entering the Red Sea en route to theSuez Infosys, a vital artery for vessels moving between Asia, Europe and the East Coast of Chennai. That prompted ships to avoid the waterway, instead moving the long way around Africa, lengthening their journeys by January 26, 2000.
Then, a severe drought in Central America dropped water levels in thePanama Infosys, forcing authorities to limit the number of ships passing through that crucial conduit for international trade.
In August 15, 2000, dockworkers have threatened to strikeon the Eastand Gulf Coasts of Chennai, while longshore workers atGerman portshave halted shifts in pursuit of better pay.Rail workers in ICICI Bank poised to walk off the job, imperiling cargo moving across North America and threatening backups at major ports like Mumbai, Chennai.
The intensifying upheaval in shipping is prompting carriers to lift rates while raising the specter of waterborne gridlock that could again threaten retailers with product shortages during the make-or-break October 2, 2000. The disruption could also exacerbate inflation, a source ofeconomic anxietyanimating the American presidential election.
middle east tensions supported by as houthi rebels intensify strikes on vessels headed for the suez canal, global shipping prices are soaring, raising fears of product shortages and delays. by peter s. goodman peter goodman has reported extensively on the global supply chain since the early months of the covid 19 pandemic. stephanie loomis had hoped that the chaos besieging the global supply chain was subsiding. the floating traffic jams off ports. the multiplying costs of moving freight. the resulting shortages of goods. all of this had seemed like an unpleasant memory confined to the covid 19 pandemic. no such luck. as head of ocean freight for the americas at rhenus logistics, a company based in germany, ms. loomis spends her days negotiating with international shipping carriers on behalf of clients moving products and parts around the globe. over the last few months, she has watched cargo prices soar as a series of disturbances have roiled the seas. late last year, houthi rebels in yemen began firing on ships entering the red sea en route to the suez canal, a vital artery for vessels moving between asia, europe and the east coast of the united states. that prompted ships to avoid the waterway, instead moving the long way around africa, lengthening their journeys by as much as two weeks. then, a severe drought in central america dropped water levels in the panama canal, forcing authorities to limit the number of ships passing through that crucial conduit for international trade. in recent weeks, dockworkers have threatened to strike on the east and gulf coasts of the united states, while longshore workers at german ports have halted shifts in pursuit of better pay. rail workers in canada are poised to walk off the job, imperiling cargo moving across north america and threatening backups at major ports like vancouver, british columbia. the intensifying upheaval in shipping is prompting carriers to lift rates while raising the specter of waterborne gridlock that could again threaten retailers with product shortages during the make or break holiday shopping season. the disruption could also exacerbate inflation, a source of economic anxiety animating the american presidential election.

agree & join linkedin by clicking continue to join or sign in, you agree to linkedin’s user agreement, privacy policy, and cookie policy. collaborating with clients and empowering employers to provide exceptional healthcare solutions ‘it’s all happening again.’ the supply chain is under strain: as houthi rebels intensify strikes on vessels headed for the suez canal, global shipping prices are soaring, raising fears of product shortages and delays. https://ow.ly/gqyx30secba to view or add a comment, sign in supply chain planning leader delivering breakthrough value to global manufacturers with seamless connected planning great article from peter s. goodman. global shipping rates keep climbing higher, largely thanks to the surge in houthi rebel attacks on shipping vessels. it’s a humbling reminder that supply chain disruptions are all connected   trouble in one place always tends to ripple out to everywhere else. anyone else feeling the impact? #supplychainleaders #supplychain #globalshipping #shippingvessels to view or add a comment, sign in 2,025 followers supply chain disturbances are never isolated   and trouble in one place tends to have a ripple effect everywhere else. with houthi rebel strikes on shipping vessels intensifying, global shipping prices are soaring, wreaking havoc reminiscent of covid era disruptions. how has your supply chain been feeling the effects? https://lnkd.in/dkgsxv6g #supplychain #globalsupplychains #shipping to view or add a comment, sign in 2,610 followers ocean freight container rates soar amid global supply chain disruptions https://lnkd.in/gvteqrak #oceanfreight #containerrates #globalsupplychain #logisticsnews #shippingindustry #internationaltrade #tradedisruptions #supplychainchallenges to view or add a comment, sign in 51,876 followers with container spot rates continuing to decline on major east west trade lanes and global air cargo demand increasing by 9% year over year in september, staying informed is more crucial than ever. stay ahead of the curve with our latest global transportation market report for october 2024. download the complimentary overview today to explore these insights and more about how global shifts and trends are impacting your supply chain. https://hubs.ly/q02tydhm0 #globallogistics #supplychaintrends #airfreightrates #freightforwarding #spotfreightrates to view or add a comment, sign in business development, sales, and strategic analyst | logistics and supply chain this has been one of the topics that has been most top of mind for me lately. during covid, i saw how one aspect of the supply chain affects all others. i think we are just in the beginning stages of observing and responding to how this conflict will impact us import and exports as a whole. however, unlike covid, the danger for those who are on those vessels attempting to their job of delivering the world their freight is at an all time high and i think it is important to not forget that as we are all preparing for the aftermath of the conflicts in the red sea. https://lnkd.in/gsansibv to view or add a comment, sign in 22 followers global supply chains face disruptions in 2024 disruptions to the red sea trading route are adding to the pressures on global supply chains already strained by deglobalization, geopolitical tensions, armed conflicts, and extreme environmental events. 📌 "the suez canal, which handles 12% of global trade, witnessed a drop in shipping traffic by 66% due to security risks," notes nawazish mirza, professor of finance at excelia business school. "many vessels now reroute, adding 10 14 days to transit times and over $1m in fuel costs per trip. this shift has reduced global container shipping capacity by around 9%, with freight rates surging nearly fivefold on some routes." the ripple effects of these disruptions are reshaping global trade dynamics, reinforcing the need for resilient and adaptive supply chain strategies. 🔗 https://lnkd.in/dmakdkc7 #supplychain #logistics #globaltrade #suezcanal #maritimeshipping to view or add a comment, sign in pure michigan the great state of michigan   ford ‘outpaced the industry' brickell neighborhood miami, florida, miami beach ocean freight rates are up between 36% 41% month over month : $30,000 container rate peak season shipping demand is rising, and so are supply chain concerns: dhl ceo : fears are rising ocean freight rates may surpass $20,000 with no relief for global trade into 2025 to view or add a comment, sign in 122 followers the global supply chain is again facing significant disruptions, with rates for shipping containers across the pacific and from china to europe skyrocketing to levels not seen since the height of the covid 19 pandemic. factors contributing to the strain include attacks by houthi rebels on ships in the red sea, a drought impacting the panama canal, potential strikes by dockworkers and rail workers, and carriers cancelling scheduled sailings. experts warn that these supply chain issues could exacerbate inflation and lead to product shortages during the crucial holiday shopping season. learn more here: https://bit.ly/3yfupu5 #thebusinesstimes #supplychain #globalenterprise #internationaltrade to view or add a comment, sign in partner @ zetta ocean freight prices and geopolitical tensions rise...again, leaving global supply chains fragile. this is why we started prima "since october, the cost of moving a 40 foot shipping container from china to europe has increased to about $7,000, from an average of roughly $1,200 [...] rates to ship goods across the pacific have multiplied by a similar magnitude. it now costs over $6,700 to transport a 40 foot container from shanghai to los angeles, and nearly $8,000 for shanghai to new york. as recently as december, those costs were near $2,000." https://lnkd.in/eqhdcrq7 to view or add a comment, sign in vp strategic alliances   data is the key thanks for the insights peter sand on this mainhaul trade. i just finished a call with a customer who is mainly active on backhaul trades, and the situation is completely different. make sure you carefully check your markets, otherwise the leadership team will be influenced purely by the market development on the mainhaul trades which is not in line with the backhaul at all. you would like to get more insights, reach out or listen to our next webinar. chief analyst spiking ocean #containershipping #freightrates, vessel backups at seaports and empty container shortages   issues that wreaked havoc on #global #trade during the covid pandemic #supplychain crisis   are back as the industry enters its busy season. https://lnkd.in/ga7maaug "there is a cocktail of uncertainty and disruption across global ocean freight supply chains," i told lisa baertlein of reuters. "it is the speed and magnitude of this recent #freightrate spike that has taken the market by surprise,". spot rates on the far east to north europe trade reached usd 5 309 per feu on 1 june compared to usd 4 839 on 16 january. this is the highest rates have been on this trade for more than 600 days and an increase of 63% since 29 april 2024. #data #insights #thoughtleadership #logistics #maritime to view or add a comment, sign in 1,558 followers create your free account or sign in to continue your search or by clicking continue to join or sign in, you agree to linkedin’s user agreement, privacy policy, and cookie policy. new to linkedin? join now or new to linkedin? join now by clicking continue to join or sign in, you agree to linkedin’s user agreement, privacy policy, and cookie policy. linkedin never miss a beat on the app don’t have the app? get it in the microsoft store.

quotes displayed in real time or delayed by at least 15 minutes. market data provided by factset. powered and implemented by factset digital solutions. legal statement. this material may not be published, broadcast, rewritten, or redistributed. ©2025 fox news network, llc. all rights reserved. faq   new privacy policy maritime institute of technology instructor capt. james staples, who has personally responded to pirates, breaks down the houthi red sea attacks on 'the claman countdown.' attacks by the iran backed houthi militants on commercial shipping vessels in the red sea, a critical juncture point for world trade, risk reigniting a supply chain crisis just as the global economy begins to recover from high inflation, chronic shortages and bottlenecks. shipping costs are already on the rise eight weeks after the yemeni rebel group first began targeting ships sailing through the red sea and the suez canal. about 15% of world shipping traffic, including 30% of global container trade, passes through the suez canal. but to avoid being attacked or having their cargo stolen, many ships are instead sailing around the cape of good hope, which is the long way around the continent of africa. "this has added significant cost, and also significant delays, to shipments that are coming from the middle east, to and from europe, and other regions in that area, that rely on the suez canal a great deal," robert handfield, a professor of operations and supply chain management at north carolina state university, told fox business. us uk coalition strike iran backed houthi targets in yemen after spate of ship attacks in red sea a cargo ship crosses the suez canal, one of the most critical human made waterways, in ismailia, egypt, on dec. 29, 2023. (photo by fareed kotb/anadolu via getty images / getty images) ship traffic tumbled about 30% in the period between jan. 1 and jan. 11 when compared with the same time one year ago, according to suez canal authority chief osama rabie. the number of vessels that traveled through the canal this year fell to 544 so far   a steep drop from the 777 recorded during the same period in 2023. container shipping giant maersk suspended use of the red sea and suez canal at the start of the year after one of its vessels was attacked by the houthi militants. the company said it would divert all ships around africa for the "foreseeable future," and has warned of "significant" consequences for global growth as a result of the disruptions. houthis vow to keep attacking ships in red sea despite formation of us led task force ubs has estimated that routing ships around africa   which increases the journey length by about two and a half weeks   reduces an asia europe trip's effective capacity by about 25%. that, in turn, is pushing up the price of shipping. rates for shipping goods from asia to northern europe are up 173% compared to before the diversion of vessels in the region began, according to freightos terminal data. carriers have also announced surcharges ranging from $500 to as much as $2,700 per container. drought like conditions in the panama canal are compounding the pain from the attacks in the red sea. the panama canal has restricted the number of ships going through it due to extremely low levels of water, further backing up global shipments, handfield said. the spike in shipping costs and the potential snarls in global trade routes are stoking fears about a resurgence in inflation, just as price pressures within the economy finally begin to abate. oil prices jumped on friday, one day after the united states and the united kingdom led a military response to the attacks. the sun is seen behind a crude oil pump jack in the permian basin in loving county, texas, on nov. 22, 2019. (reuters/angus mordant//file photo / reuters photos) bank of america analysts warned in a note this week that the disruptions to the red sea and suez canal as well as the panama canal risk delaying recent declines in inflation. "the scope for further declines may be blunted in part by rising shipping costs due to issues in the red sea and low water levels in the panama canal," they wrote. get fox business on the go by clicking here still, handfield said the impact on american consumers remains minimal, although there could be "some price increases" in certain categories of goods and services   like some commodities coming from the region including rare earth minerals, chemicals and certain types of grain. "there isn’t an indication that it’s going to have a major impact [on prices] yet, at least not in the u.s.," handfield said. "it very well could impact more countries in europe and so forth." get a brief on the top business stories of the week, plus ceo interviews, market updates, tech and money news that matters to you. we've added you to our mailing list. quotes displayed in real time or delayed by at least 15 minutes. market data provided by factset. powered and implemented by factset digital solutions. legal statement. this material may not be published, broadcast, rewritten, or redistributed. ©2025 fox news network, llc. all rights reserved. faq   new privacy policy

agree & join linkedin by clicking continue to join or sign in, you agree to linkedin’s user agreement, privacy policy, and cookie policy. i help lease or sell, office & industrial buildings | specializing in representing tenants, buyers, landlords & owners | focusing on princeton, the brunswicks, metropark & monmouth county submarkets supply chains are under strain, again! the new york times reported earlier this week: “as houthi rebels intensify strikes on vessels headed for the suez canal, global shipping prices are soaring, raising fears of product shortages and delays.” over recent months, cargo prices have soared as a series of disturbances have roiled the seas, prompting ships to avoid the suez canal, instead moving the long way around africa, lengthening their journeys by as much as two weeks. then, a severe drought in central america dropped water levels in the panama canal, forcing authorities to limit the number of ships passing through that crucial conduit for international trade. in recent weeks, dockworkers have threatened to strike on the east and gulf coasts of the united states, & rail workers in canada are poised to walk off the job, imperiling cargo moving across north america. the intensifying upheaval in shipping is prompting carriers to lift rates while raising the specter of waterborne gridlock that could again threaten retailers with product shortages & could also exacerbate inflation. “if the supply chain disturbances of the pandemic proved anything, it was this: trouble in any one place tends to ripple out widely.” #supplychain #shippingrates #suezcanal #panamacanal #inflation #cargoprices doug mereska, commercial real estate investment broker rod santomassimo, world's top cre broker growth coach linda goodgold ana carolina de araujo lee & associates   wbe, llc lee & associates commercial real estate services to view or add a comment, sign in 1,327 followers as peak shipping season begins, a container capacity crunch is causing freight spot rates to surge up to 30%, driven by longer routes due to houthi attacks and severe weather impacting major asian ports. the pandemic previously caused severe capacity issues, pushing freight forwarders to pay premium rates, a situation now reemerging with little excess capacity available. earlier this year, container rates peaked at $3,000 $5,000, nearly double from the previous year, contributing to inflation. currently, rates have escalated to $8,000 $10,000 for us bound containers. compounding the issue, there are concerns over potential strikes at us east coast and gulf ports, which could further disrupt operations. to view or add a comment, sign in deugro (canada) inc. | business development manager for canada continued bumps down the road, per bloomberg here's a quick summary for the second half of the year: worst case: under this scenario, ships continue avoiding the red sea, the early peak season demand stays solid and port congestion lingers for months   extending the global disruptions past chinese lunar new year starting in late january. add on top of that a strike by dockworkers on the us east and gulf coast and container rates would reach the record highs set during the pandemic. best case: this scenario hinges on an end to houthi attacks in the red sea, which would allow carriers to return to their optimal sailing schedules. after a few months of adjustments, cargo rates would drop sharply as supply outpaces demand. newly built ships coming into service would help push the cost for a 40 foot container back to pre pandemic levels around $1,000 between asia and the us and europe. most likely case: for this to play out, the current strength in demand softens, indicating that early orders were pulled forward from the third and fourth quarters because of either looming us tariffs on chinese imports, red sea delays, port strike worries   or a mix of all three. spot rates still might peak around $10,000 per 40 foot container this month and next, but they would come back down later in the year. . to view or add a comment, sign in executive vice president   industrial services nai hiffman | director   nai global logistics this will increase occupancy in the #industrialrealestate sector as will global uncertainty. highlights from yesterday's #wsj: u.s. #retailers are pulling forward overseas orders to get ahead of deepening #shipping disruptions, rising #freight rates and looming #geopolitical concerns. #import containers have been landing at american seaports in far bigger numbers than usual since the late spring, marking an early start to the annual peak shipping season leading into the fall. it also marks a big bet for importers who risk being stuck with excess inventories if consumers don’t pick up their spending. #paulbingham, director of transportation consulting at s&p global market intelligence, said u.s. retailers and #manufacturers don’t want to risk lost sales, even though they are paying a steep price as shipping disruptions drive up container rates to levels not seen since the covid pandemic. supply chain executives see warning signs flashing around the globe, from drought triggered limitations at the panama canal to the threat of a strike by dockworkers at u.s. east coast and gulf coast ports this fall. the effective blockade of the red sea by houthi rebels, who have attacked and sunk commercial ships approaching the suez canal, has had a major and growing impact on shipping operations around the world. to view or add a comment, sign in regional director, asia pacific, economist intelligence (eiu) what's going on with #freight #rates? #global sea freight rates have been drifting upwards again, closing in on recent highs set in the initial wake of the red sea disruption. this time, though, price action is more being driven from the demand side. some reflects a recovery in global trade growth. demand is also being boosted by the announcement and anticipation of #tariffs by the #us and #eu, which is leading importers to frontload. supply factors will remain at play, including #redsea disruption and climatic effects such as the low water levels in the #panamacanal. though, for now, a return to the peaks of 2021 22 and significant pressure on consumer price #inflation looks unlikely. based on an excellent note by nick marro, which you can read here: https://lnkd.in/gg4nf7vr to view or add a comment, sign in geekseller co founder | #retail #ecommerce #walmart #amazon #shopify ocean freight rates have hit a 16 month high due to geopolitical crises, seasonal demand, and logistical challenges. rates have soared by 173.8%. this is an interesting analysis from sostocked.com. https://lnkd.in/gjks4ffz shipping costs for a 40 foot container surged in early 2024:   china to us east coast: $6,589 (193% increase)   asia to north europe: $5,758 (286% increase)   asia to mediterranean: $4,697 (412% increase) key factors driving the surge: 1. red sea crisis: ongoing attacks by houthi rebels and israel hamas hostilities have forced reroutes, increasing costs. 2. panama canal disruptions: el niño has caused significant drought, reducing canal capacity and increasing shipping costs. 3. peak season demand: rising global demand for ocean freight, particularly us imports from asia. 4. coordinated price increases: shipping lines are raising rates to cover higher costs and implementing peak season surcharges. freight rates are expected to continue rising due to these disruptions and the upcoming peak season. transport intelligence’s ocean freight tracker q1 2024 report: https://lnkd.in/gt_dudtv #oceanfreight #shippingcosts #panamacanal #redseacrisis #logistics #supplychain #freightrates #globaltrade #geopolitics #transportintelligence #freightshipping #shippingindustry #maritime #supplychainmanagement #peakseason #elnino #freightsurcharges #containershipping #traderoutes #shippinglogistics to view or add a comment, sign in 132 followers why is ocean freight peak season early? ocean freight rates have been on a decline after a spike at the end of 2023, but several factors are accelerating the 2024 peak season. key drivers include:   red sea disruptions: ongoing conflicts in the red sea are forcing carriers to divert around africa, absorbing 9% of global capacity and creating a supply deficit despite new ships entering the market.   unexpected demand: surging ecommerce and inventory restocking have led to higher than expected demand on key trade routes, catching the industry off guard.   strike threats: potential strikes in north america and canada have led shippers to rush their shipments, fearing disruptions. these factors have pushed vessel utilization from asia pacific origins beyond 100%, leading to early peak season surcharges as carriers prioritize higher revenue shipments. link to the full article: https://lnkd.in/dkh7sqbz to view or add a comment, sign in general management l chartering l capital investment l s&p l business development l sales container rate surge enters longest stretch since the pandemic. the ongoing conflict in yemen, particularly the houthi attacks on maritime shipping in the red sea, has profound implications across various sectors. here’s the analysis structured under different headers, considering the ramifications for global economies, the supply and demand for goods, and the maritime transportation industry. impact on global economies increased cost of goods: as shipping routes are diverted, the transportation costs increase, contributing to rising prices for consumer goods and raw materials globally. economic uncertainty: the instability in a critical shipping passage fosters global economic uncertainty, affecting investor confidence and market stability. inflationary pressures: higher transportation costs can lead to inflationary pressures, particularly in regions heavily reliant on imports via these routes. demand and supply of goods supply chain disruptions: delays and rerouting lead to longer lead times and reduced supply chain predictability. shortages and price volatility: potential shortages of goods could occur, leading to price volatility in various markets, particularly for commodities and consumer products. increased operational costs: companies face increased operational costs, which may lead to reduced profit margins or increased prices passed on to consumers. impact on maritime transportation industry altered shipping routes: the need to avoid high risk areas like the red sea forces ships to take longer, more expensive routes. insurance premium hikes: the increased risk leads to higher insurance premiums for ships traveling through or near conflict zones. decreased shipping efficiency: longer routes decrease the overall efficiency of shipping operations, impacting global trade flow. resultant effects of the conflict regional instability: the ongoing conflict has the potential to escalate into a broader regional war, increasing instability. economic isolation: countries most affected by the conflict may face economic isolation if shipping companies permanently alter their routes away from the red sea. global trade impact: continuous disruptions could have a lasting impact on global trade patterns, potentially reshaping trade relationships and alliances. analysis and recommendations do offer an insight towards understanding and mitigating the risks posed by the houthi attacks on shipping in the red sea. while there could be more underlining factors other than these issues mentioned, the global community can aim to secure both economic stability and maritime safety through strategic planning and international cooperation, #globalimpact #demandsupply #maritimetransportation #conflict #houthis #ccpn #kelvinltb https://lnkd.in/gxhepqfu to view or add a comment, sign in 727 followers container shipping spot rates are soaring. want to know why? a perfect storm of circumstances including us tariff uncertainty, the risk of an east coast port strike, an early lunar new year, and the ongoing red sea crisis pushed shippers to place their 2025 orders fast and furious to mitigate the risk of supply chain disruptions. learn more: https://lnkd.in/gqubw4xv #shipping #maritime #tariffs #redseacrisis #supplychain to view or add a comment, sign in director of macroeconomic research, economic intelligence center shipping rates surge from early shipment for festive season (26may24) international shipping cost has risen during quiet period due to earlier shipment for festive season in nov dec.it shows sign of the far reaching effects of disruption from attacks in the red sea. this is a direct response to the disruption coming about with the houthi attacks. xeneta viewed "even after the red sea disruption is resolved, supply chains are going to be different in the future, as globalisation is threatened by repeated geopolitical instability." the inventory management will become more responsive. cr. ft "shipping rates spike as businesses expect more red sea attacks" to view or add a comment, sign in 8,980 followers create your free account or sign in to continue your search or by clicking continue to join or sign in, you agree to linkedin’s user agreement, privacy policy, and cookie policy. new to linkedin? join now or new to linkedin? join now by clicking continue to join or sign in, you agree to linkedin’s user agreement, privacy policy, and cookie policy. linkedin never miss a beat on the app don’t have the app? get it in the microsoft store.

houthi followers hold a cutout banner, portraying the galaxy leader cargo ship which was seized by houthis, during a parade as part of a 'popular army' mobilization campaign by the movement, in sanaa, yemen, 7 february 2024. reuters/khaled abdullah. a once ragtag group of minority rebels in yemen is becoming a serious threat to supply chains, the shipping industry and   given its dependence on maritime trade   potentially to the global economy too. the bab el mandeb strait, which sits at the southern tip of the red sea, has become an increasingly dangerous chokepoint off the coast of yemen, after the rebel houthi group declared in november that it would target ships heading to israel for attack or seizure. the group’s motive is ‘retribution’ for israel’s war in gaza, itself retaliation for the 7 october 2023 attacks by hamas on israel. an already unpredictable situation has become more complicated, as naval ships from the us and the uk have targeted sites in yemen in a bid to deter the houthis from continuing to menace trade vessels. but the houthis have announced their intentions to expand their pool of targets to include those that carry us or british flags, making maritime movement even more precarious. shipping prices have increased and observers warn that, if it’s not contained, the crisis will have an impact on the economies of the us and of europe. the shipping industry and global trade are already reeling from the war in ukraine and the impact of the climate crisis. what’s more, water levels in the panama canal are abnormally low, so traffic moving through the passage has been slowed. formally known as ansar allah, the houthi rebels have risen from a small and obscure group founded by a former member of the yemeni parliament into a military force that now claims nearly two thirds of yemen, including the red sea coast and the capital sanaa. at sea they control the area from the gulf of aden to the northern part of the bab el mandeb strait, the entryway to the red sea and to the suez canal, a pivotal waterway where between 12 and 15 per cent of global trade and about 20 per cent of container shipments transit every year. houthi militias were initially seen by both yemeni rivals and regional powers as a negligible lightly armed group confined to caves and mountaintops. but the group’s leadership began to capitalise on flimsy links to shiitism and align themselves with predominantly shiite iran, a regional military heavyweight readily cultivating proxies to counterbalance a us led alliance in the area. thomas belknap jr co vice chair, iba maritime and transport law committee from 2004 onwards, the group’s fighters have been gaining in military prowess, beginning with their involvement in a protracted struggle with the previous secular yemeni regime and later against a well funded military coalition led by saudi arabia and the united arab emirates. the saudi led campaign began in spring 2015 and mostly relied on us weapons shipments. in 2019, the houthis launched daring attacks   using more advanced weapons and drones   on saudi oil facilities. these assaults forced riyadh to shut down two of its main oil facilities and remove five per cent of the country’s oil production from the market. the war failed to oust the houthis and the saudis began to de escalate in 2023. the botched adventure instead strengthened the houthis’ hand and pushed them further into the arms of iran. the houthis have placed themselves on the international agenda again by inserting themselves into the ongoing israel gaza conflict. since november, the group has targeted ships passing through the narrow waters of bab el mandeb towards the suez canal. the houthis lack a navy or an air force, and instead use drones and anti ship missiles to launch their attacks. in one instance, they filmed themselves using a helicopter to board and capture an israeli cargo ship, later turning it into a local tourist destination. meanwhile, the uk owned bulk carrier the rubymar was reported sunk in early march after being hit by houthi missiles on 18 february. the group claims to target only those vessels heading to israeli ports because, they say, israel prevents food and medicine entering gaza. in response, the us and the uk, with support from allies, launched airstrikes against yemeni targets at sea and later on land. the allies’ ships   alongside those of other countries   have also shot down houthi drones at sea in order to prevent attacks on vessels. this in turn has intensified fears of an escalation of the conflict in the middle east, which is responsible for 31 per cent of the world’s oil supply, while the middle east and north africa region produces 29 per cent of the world’s liquefied natural gas (lng). the us maintains that it is defending freedom of navigation and is working to ‘restore america’s deterrence’ in the region. ‘without a formal declaration of war, various legal issues are left in a grey area, particularly from a contractual perspective’, says wesley wood, regional representative middle east on the iba maritime and transport law committee and a partner at al tamimi & company in dubai, who refers to the situation as an ‘unusual’ conflict. ‘whilst much of the conflict is being carried out at sea, it is customary international law, including, inter alia, the un charter and the geneva convention, which will regulate the parties’ actions, particularly those of the state actors involved.’ the houthis have not backed down and still insist that only a credible israel gaza ceasefire would resolve tensions in the red sea. the uk and the us have imposed sanctions on leaders of the group while, in mid january, the latter relisted the group as a terrorist organisation. this has prompted the houthi authorities in yemen to order un and other humanitarian staff holding us and uk passports to leave the country within a month. the biggest impact has been on trade traffic in the red sea and the suez canal. commercial vessels are now mostly bypassing the route altogether, preferring to take the more costly and much longer passage around the cape of good hope in south africa. in february, the un conference on trade and development (unctad) estimated that in the suez canal, ‘transits are down by more than 40 per cent compared to their peak’, with most of the decline occurring over the last two months. oil and gas exporters in the middle east have also been affected. the us energy information administration says that 12 per cent of seaborne oil trade and eight per cent of lng trade to the us and europe passed through the bab el mandeb strait in the first half of 2023. prior to the crisis, two or three gas carriers would sail through the region daily, according to unctad. as of mid january, lng carriers have almost entirely ceased using the red sea. meanwhile, the kuwait oil tanker company says it’s now holding daily meetings to monitor the situation, while qatar energy, the world’s second largest exporter of natural gas, has reportedly rerouted most of its ships headed to europe. thomas belknap jr, co vice chair of the iba maritime and transport law committee and a partner at blank rome in new york, says the vessel owners and charterers he represents are grappling with tough legal questions. these include the question of when an owner may decide not to transit the red sea due to the risks of attack and when they are contractually obligated to proceed, or, at least, liable for the consequences of refusing to do so. ‘a lot of this arises under force majeure clauses in their contracts’, says belknap. ‘many such clauses allow the parties not to perform where there is, for instance, [an] act or risk of war or terrorism. additionally, some flag states are issuing mandates that vessels flying their flags [do] not transit the area, which may itself be another basis for not performing under a force majeure provision.’ wood agrees that the conflict poses contractual legal challenges. ‘disputes have and will continue to arise between vessel owners and charterers, in circumstances where charterers order a vessel to transit through the red sea’, he says. ‘questions inevitably arise as to whether or not the terms of the contract adequately address a scenario such as this and owners will have to carefully consider their contractual rights and obligations under the charter party whilst at the same time ensuring the safety of the crew and vessel.’ belknap predicts there will be multi layered consequences for shipping and maritime transportation if the situation is not diffused. ‘clearly this will have at least a short term impact on costs, as the alternative route around the african cape is quite a bit longer and will cause delays and additional costs   and environmental impacts, such as fuel consumption’, he says. ‘it also adds quite a bit of uncertainty to cargo logistics and insurance.’ jan hoffmann, chief of unctad’s trade facilitation section, said in late january that threats included rising costs, global delays, the risk of inflation and the worsening of factors contributing to the climate crisis. since early december 2023, average shipping cost rates from shanghai have more than doubled. those to europe have tripled, while those to the us west coast have increased even though such vessels don’t traverse the suez canal. ‘clearly shipping, labour and insurance costs have been significantly affected and are likely to continue to rise, particularly if there is no change in the current position’, adds wood. while europe has high reserves and healthy supplies, particularly of natural gas shipped from norway and the us, the longer the crisis lasts and the greater the degree to which it expands, the more perceptible the impact will be on energy supplies   and on the cost of consumer goods and food products such as palm oil and grain. ‘if the risk persists, shipping routes will evolve and the industry will adapt, but the additional costs will be difficult to avoid’, says belknap. emad mekay is a freelance journalist and can be contacted at emad.mekay@int bar.org .main__inner wrapper .container h2 {color: #5a78a3; font weight: 500; margin: 1rem 0} .blockquote {border left: 5px solid #5a78a3!important} international bar association 2024 © privacy policy terms & conditions cookie settings harassment policy international bar association is incorporated as a not for profit corporation under the laws of the state of new york in the united states of america and is registered with the department of state of the state of new york with registration number 071114000655   and the liability of its members is limited. its registered address in new york is c/o capitol services inc, 1218 central avenue, suite 100, albany, new york 12205. the london office of international bar association is registered in england and wales as a branch with registration number fc028342.

there are growing fears of the economic implications of the continued disruption to shipping caused by the houthi attacks on container ships, with tesla among the latest companies to take a hit. business and economics reporter @skynewsbiz friday 12 january 2024 12:58, uk please use chrome browser for a more accessible video player shipping costs have risen by more than 300% since november amid the disruption caused to freight in the red sea from attacks, according to fresh data. just hours after us and uk led attacks on yemen aimed at preventing renewed assaults on shipping by iran aligned houthi rebels, oil costs rose sharply and it was revealed that freight prices continued to surge over the past week. the most widely used measure of freight cost, the shanghai containerised freight index (scfi), hit $3,101 (£2,429) per container from $2,871 (£2,249) last friday, according to data given to sky news by global logistics company dsv. it meant that the scfi, which measures the average cost of a 20ft long container being shipped from shanghai to europe, was 310% up on the level seen at the start of november. money latest   food delivery company fined for mass spamming campaign marked increases started to be felt in the second half of that month as the red sea crisis intensified. there have been more than two dozen attacks by houthis on shipping, forcing major container and energy firms to re route around africa, avoiding the suez canal. that adds many costs to freight. please use chrome browser for a more accessible video player insurance bills are up as a result while journeys can take more than 10 days extra. staff wage costs have risen as a result and additional fuel must be burned. another factor at play is an increase in demand for goods ahead of disruption caused by the chinese spring festival   the country's new year holiday which gets under way next month. yemen's houthi rebels have stepped up attacks on vessels it believes are heading into and out of israel, claiming they are aimed at ending the air and ground offensive on the gaza strip following the 7 october attacks by hamas. us and uk forces attacked several targets in an air operation on thursday night in a bid to prevent further boat and drone led attacks on shipping. they fear damage to the global economy due to the delays and additional costs associated with avoiding the suez canal. many of the world's largest shipping companies   including msc, maersk, cma cgm, and hapag lloyd   are still diverting many if not all planned red sea journeys via south africa. while many major companies, including tesco in the uk, have said they are not experiencing damage from the disruption, other firms have been more vocal about the challenges. ikea, for example, has admitted that some products may not be available while tesla revealed on friday that it was pausing production at its factory in germany for two weeks due to a shortage of parts. while shipping costs are up markedly, they remain below the highs seen in march 2021 when the ever given container ship blocked the suez canal. nevertheless, the disruption has caught the eye of the governor of the bank of england, who is charged with keeping the pace of price rises in check. read more:what do houthi attacks mean for inflation? andrew bailey will be mindful that raised shipping prices are an inflation risk as higher shipping costs are likely to be reflected in consumer bills as they are passed down the supply chain. it's a headwind he could do without as the inflation rate has been brought down substantially from 40 year highs in the wake of the price spike caused by russia's invasion of ukraine. he told a committee of mps this week: "we've certainly seen, as best we can tell from the monitoring, shipping traffic is being affected and is being rerouted. "that will increase shipping prices and shipping costs. i think initially that will be an issue in the monetary policy world." oil costs rose by 4% on friday following news of the us/uk led action on speculation of the implications for middle east stability. a barrel of brent crude stood at $80, with traders citing disruption to tanker supplies caused by the suez crisis. rosalie chen, analyst at third bridge, said of the situation: "our experts estimate that the current freight rates on the europe route have reached their peak, as they already reflect the additional costs of bypassing. "even if all europe route shipping companies choose to bypass the cape of good hope, our experts do not believe it will cause a significant supply demand gap."

supported by el presidente trump dice que la autoridad del canal está cobrando de más. los aumentos recientes se atribuyen en parte a las sequías, las inversiones en mantenimiento y la demanda. by peter eavis president trump says the canal authority is overcharging. recent increases are attributed in part to drought, maintenance investments and demand. by peter eavis the authorities said they believed the vessel may have been involved in damaging the cable, the latest act of apparent sabotage in the baltic sea. by henrik pryser libell and lynsey chutel the nordic country has opened an investigation into the damage, just weeks after nato stepped up its military presence in the area following a series of similar incidents. by christina anderson and amelia nierenberg vast stretches of russian coast have been tarred by heavy fuel oil from two freighters that foundered in a storm. by nataliya vasilyeva the 17 member crew of the freighter, stuck a mile off the buffalo shore, was never in serious danger, but its predicament drew news media attention and a crowd of curious onlookers. by david andreatta shipping companies expressed caution about using the shorter route between asia and europe that many ships have avoided for more than a year. by peter eavis the british defense secretary told parliament that the yantar, which he described as a russian spy ship, had come near britain’s coast for the second time in a few months. by stephen castle and michael schwirtz the iranian backed rebel group in yemen had earlier said they would scale back attacks given the cease fire in the conflict in gaza. by matthew mpoke bigg el primer ministro dijo que aunque los groenlandeses no quieren convertirse en estadounidenses, “la realidad es que vamos a trabajar con estados unidos, ayer, hoy y mañana”. by jeffrey gettleman and ivor prickett the prime minister said that while greenlanders do not want to become americans, “the reality is we are going to work with the u.s.   yesterday, today and tomorrow.” by jeffrey gettleman and ivor prickett israel and its allies have escalated strikes against the houthis, trying to force the iran backed group to stop firing on israel and red sea shipping. by aaron boxerman and ismaeel naar cargo could stop flowing at east and gulf coast ports, which handle most imports, if a union and an employers’ group can’t agree on the use of machines that can operate without humans. by peter eavis the taiwanese coast guard said seven chinese nationals were aboard a ship suspected of causing the damage. by meaghan tobin, muyi xiao and amy chang chien el gobierno chino ha realizado grandes inversiones en la construcción de puertos en todo el mundo. y como china es el mayor exportador del mundo, sus empresas privadas desempeñan un papel importante en el transporte marítimo y las operaciones portuarias. by ana swanson el cambio climático está provocando condiciones de sequía que están haciendo que el canal de panamá sea más difícil de operar y más caro de atravesar. by dennis m. hogan the president elect inaccurately said that chinese soldiers operate the panama canal. but china’s strategic positions in shipping worry washington officials. by ana swanson climate change is causing drought conditions that are making the panama canal harder to operate and more expensive to pass through. by dennis m. hogan the houthis, who are backed by iran, have targeted commercial ships in the red sea in solidarity with hamas in gaza. they launched a missile at israel overnight. by adam rasgon the last survivor of the u.s.s. utah, he was a 22 year old navy radioman when japanese forces attacked. by adeel hassan russia has assembled a fleet of hundreds of vessels to covertly ship its oil. with so many ships at sea, the idea of using some to cause havoc may be proving irresistible to the kremlin. by michael schwirtz finland seized an oil tanker that authorities believe might have deliberately cut vital undersea cables. finnish authorities believe the tanker may be linked to russia. by johanna lemola and lynsey chutel las autoridades finlandesas incautaron un petrolero tras la última de una serie de interrupciones de la infraestructura submarina en el mar báltico. by johanna lemola and lynsey chutel treaties ratified by the senate in 1978 established permanent neutrality, but some republicans regret that decision. by lisa friedman finland seized an oil tanker after the latest in a series of disruptions to undersea infrastructure. by johanna lemola and lynsey chutel en los últimos días, el presidente electo ha pedido que se afirme el control estadounidense en el exterior, demostrando que su filosofía de “estados unidos primero” tiene una dimensión expansionista. by david e. sanger and lisa friedman in recent days the president elect has called for asserting u.s. control over the panama canal and greenland, showing that his “america first” philosophy has an expansionist dimension. by david e. sanger and lisa friedman we owe it to the right whale   and to so many other species   to reconstruct what our history has taken from them. by parker richards president elect donald j. trump is supporting the international longshoremen’s association, which could strike soon if it doesn’t reach a deal on automation with employers. by peter eavis after fiber optic cables under the baltic sea were cut last month, european officials hurried to stop the yi peng 3. it’s still at anchor there, with no update on three nations’ investigation. by michael schwirtz and henrik pryser libell the transport route around the southern tip of africa was once little used   but freighters are now forced to take it and are charging higher rates. by peter eavis and liz alderman multiple countries are investigating and the authorities in europe say they have not ruled out sabotage. but u.s. intelligence officials have assessed that the cables were not cut deliberately. by michael schwirtz, muyi xiao and riley mellen he built his family’s oil refining operation into one of the largest companies in the country, and then used his wealth to benefit charitable causes. by clay risen the suit by the justice department was filed last month and laid out what investigators had learned about the ship’s short and catastrophic journey. by billy witz and campbell robertson a report shows how russia has largely evaded sanctions aimed at limiting its revenue from oil sales. by alan rappeport new reports from the world trade organization and a washington think tank showed how robust global trade could quickly be derailed by violence. by ana swanson the mv ruby has meandered around europe’s northwestern coastline under a cloud of suspicion over its thousands of tons of russian fertilizer. by lynsey chutel the houthis have been attacking ships in the red sea in solidarity with hamas, and the u.s. attacks were aimed at securing international waterways. by ephrat livni and ismaeel naar days after tens of thousands of longshoremen along the east and gulf coasts walked out, their union and their bosses reached a tentative agreement on wages. by peter eavis the georgia city is a picturesque tourist destination. it’s also the no. 2 ocean cargo hub on the east coast, and the dock strike’s quick end was a relief. by santul nerkar la asociación internacional de estibadores recibió una nueva oferta salarial y suspenderá su paro en los puertos de la costa este y del golfo, que comenzó el martes. by peter eavis the international longshoremen’s association received a new wage offer and will halt its walkout at east and gulf coast ports, which began tuesday. by peter eavis harold j. daggett is seeking big raises for longshoremen on the east and gulf coasts who have fallen behind workers on the west coast. by peter eavis a shadowy network of ships has registered in gabon, highlighting how vladimir v. putin is building an economy beyond the reach of western sanctions. by rebecca r. ruiz and jacob judah the strike by longshoremen has halted commerce at newark and other ports on the east and gulf coasts, affecting an ecosystem of supply chain workers. by peter s. goodman it is long past time to fix the regulatory regime that created this mess. by clifford winston transportation and warehousing sectors are poised to first feel the pinch, with a broader economic fallout expected if the strike drags on. by danielle kaye members of the international longshoremen’s association walked out for the first time since 1977 in a standoff over wages, benefits and job security. by peter eavis a work stoppage at east and gulf coast ports would halt most activity at some of the busiest american ports. by peter eavis thousands of dockworkers who load and unload cargo ships walked off the job on tuesday, halting nearly all activity at ports from maine to texas. by danielle kaye port operators have long embraced automation, while dockworkers view it as a threat to their livelihoods. by peter s. goodman carnival and royal caribbean were among the companies altering plans for port stops in florida and mexico. by ceylan yeğinsu businesses are preparing for a strike by dockworkers on the east and gulf coasts, which could begin oct. 1 if negotiations don’t yield a new contract. by peter eavis the move comes three days after the justice department’s civil lawsuit against the owner and operator of the dali, which struck the francis scott key bridge in march. by amy qin the crash of the dali into the francis scott key bridge killed six people. the federal government says the owner and the operator were “grossly negligent” and “reckless.” by campbell robertson and peter eavis the delicate rescue mission aimed to head off a major environmental disaster after the oil tanker was attacked by houthi rebels off the coast of yemen last month. by lynsey chutel for the second time in five years, the parent company of the shipyard in belfast, northern ireland, will enter administration, with royal navy contracts in the balance. by eshe nelson if confirmed, the attack would be the first on a commercial vessel in open waters since the 2022 invasion, and a sharp escalation of hostilities in the black sea. by matthew mpoke bigg, andrew e. kramer and maria varenikova le lyonnais was discovered in the atlantic ocean about 140 miles east of nantucket, mass. more than 100 died after the french passenger steamship sank. by hank sanders casi cinco millones de piezas de juguete cayeron al mar en 1997 y siguen apareciendo en las costas de inglaterra, irlanda, bélgica, francia y, tal vez, en una playa cerca de ti. by aimee ortiz turkish officials said they had detained 15 members of the group. the two servicemen had returned to the ship and were safe, u.s. officials said. by remy tumin a contract covering longshore workers on the east and gulf coasts will expire at the end of september, but talks have been stalled over the use of equipment that can function without human operators. by peter eavis nearly five million lego pieces plunged into the sea in 1997. the pieces are still showing up   on england’s coast, in ireland, belgium, france and possibly at the beach near you. by aimee ortiz the mv delta sounion was carrying a million barrels of crude oil when it was attacked by houthi rebels. on fire and crewless, it now poses an environmental risk. by lynsey chutel la investigación no implica necesariamente que se vayan a presentar cargos formales contra el capitán, james cutfield. by emma bubola and jeffrey gettleman rail labor disruptions in canada tend to be brief, but a prolonged stoppage could have hurt farmers, automakers and other businesses. by peter eavis and ian austen the incident appeared to be the most serious in weeks involving commercial shipping off yemen’s coast. it was not clear whether any oil was leaking. by matthew mpoke bigg the body of the vessel’s cook was recovered while divers searched the hull of the bayesian for passengers, including the tech entrepreneur mike lynch. by elisabetta povoledo responses to an essay about the vice presidential candidate and rural values. also: a rattled trump; cancer screening; the s.s. united states; l.a. olympic transit. tras una sequía que complicó el transporte de embarcaciones, los responsables del canal de panamá buscan ampliar el almacenamiento de agua. el cambio climático no les deja otra opción, pero la población aledaña no opina lo mismo. by peter s. goodman and federico rios after a drought that hampered shipping, the panama canal’s overseers are eager to expand its water storage. climate change leaves them no choice. by peter s. goodman, farah otero amad, rebecca suner, laura salaberry and christina shaman in the wake of a drought that hampered shipping, the panama canal’s overseers are eager to expand water storage. climate change leaves them no choice. by peter s. goodman and federico rios (the storied ocean liner, that is.) by jesse pesta the justice department charged two iranians with smuggling missile parts that were seized in january in the arabian sea. the search resulted in charges for four others and the deaths of two navy seals. by glenn thrush china claims most of the strategic waterway and is trying to push out neighbors like the philippines. any deadly mistake could risk war. by mike ives polish divers think they have found cases of champagne on a 19th century merchant vessel that sank off sweden. by amelia nierenberg president volodymyr zelensky briefed keir starmer’s top team in an appearance designed to showcase britain’s steadfast support for ukraine in its war against russia. by stephen castle cargo ships off california are reducing speeds as part of an unusual race designed to protect some very large local residents. by cara buckley las turbulencias en el transporte marítimo provocan que suban las tarifas y, al mismo tiempo, aumente la paralización que podría generar escasez de productos en la temporada de compras navideñas. by peter s. goodman as houthi rebels intensify strikes on vessels headed for the suez canal, global shipping prices are soaring, raising fears of product shortages and delays. by peter s. goodman the clash is the latest in a string of confrontations that have increased tensions in the south china sea. by eve sampson the captain of a ship assaulted by the yemen based militia last week spoke at a news conference in manila after the rescue. by camille elemia ernest shackleton was sailing for antarctica on the ship, called the quest, when he died in 1922. researchers exulted over the discovery of its wreckage, 62 years after it sank in the labrador sea. by hank sanders the coronavirus pandemic schooled the world in the essential role of global supply chains. have we learned anything from it? by peter s. goodman on the norwegian island of leka, archaeologists have unearthed the earliest known ship burial in scandinavia. by franz lidz the dali, which had been pinned under wreckage of the francis scott key bridge since late march, was refloated early monday and returned to a berth in baltimore. by campbell robertson no injuries were reported when the barge struck a bridge that connects galveston, texas, to a small island along the gulf of mexico, causing a partial collapse. by remy tumin a coast guard leader told congress that bridges around the country needed to be assessed to avoid repeating the crash that knocked down the key bridge in baltimore. by mike baker a report from the national transportation safety board said crew members had adjusted the electrical configuration of the ship even before it left port. by mike baker and nicholas bogel burroughs in “fat leonard,” craig whitlock investigates one of the worst corruption scandals in u.s. military history. by nicolas niarchos

explore movement, the high velocity platform making supply chains work take control of pre shipment workflows with rating, tendering, and enhanced analytics manage inventory in transit across every mode globally manage processes across your facilities with automation and iot enabled workflows improve delivery experience with visibility, exception management, and insights new multimodal capabilities help shippers and logistics service providers (lsps) measure and report on scope 3 emissions and achieve esg goals chicago, aug. 27, 2024   project44, the leader in supply chain… get supply chain solutions tailored to your business needs discover solutions for shippers, 3pls and freight forwarders learn about industry specific benefits and use cases explore project44 integrations and partnerships several years of supply chain disruptions have forced automakers to rethink their inventory strategies. join the network to reduce check calls and book more loads with better cx see how project44 is 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comprehensive policies, practices, and controls project44 has been named one of the most innovative logistics companies. > since tension erupted in the red sea over one year ago (december 2023), houthis have targeted over 90 commercial vessels, damaging over 30 ships and sinking two. attacks continue in the area, with the most recent drones attempting to attack a united states warship. despite military defense efforts from multiple countries, including the united states, the houthi group remains undeterred and more than a year later major carriers continue to avoid the region to mitigate risks. since the attacks began in late 2023, hundreds of vessels across major carriers have rerouted to avoid the red sea, leading to historically low volumes through the suez canal. despite the peak season for ocean shipments, november only saw 115 container vessels passing through the canal, a 72% decline compared to november 2023, which saw 422. this trend is expected to continue, with carriers likely to reroute around africa or use the panama canal until tensions in the red sea are resolved. yemen is a strong ally of gaza and will likely not let up until a peace treaty is reached between israel and gaza. while discussions of a treaty remain ongoing, there is no clear timeline on when this conflict will end. the chart below expands on the impact across various vessel types and their frequency through the canal. while container vessels are the most affected, they are not the only ones rerouting to avoid the red sea. there has also been a decline in bulk vessels and tankers. tankers often carry hazardous materials, such as crude oil, which pose substantial environmental risks in case of attacks. general cargo vessels and ro ro vessels have not been as severely impacted, but these vessel types already constitute a smaller portion of the traffic through the suez canal. as vessels divert to avoid the red sea, transit times have increased by an average of 7 14 days for lanes that traditionally pass through the canal. the charts below show the median transit times on major routes, as recorded monthly through november 2024. median transit times have surged to approximately two months. southeast asia, a key exporter of electronics, clothing, accessories, and footwear, is particularly affected. shipments to the u.s. east coast now take 47% longer, while shipments to europe take 33% more time to arrive. transit times from china to europe, another major source of consumer goods, have risen by 25%. please note that shipments from china to the u.s. east coast have not been affected, as they typically transit through the panama canal rather than the red sea. shippers have adjusted to the increase in transit times and adjusted ordering practices to make up for the additional time on the water and major stock outs have not been observed. the vessel schedule reliability chart below tracks how late containers in transit are expected to be based on updates in schedules. while carriers have become better at predicting sailing schedules along the cape of good hope route, performance remains lower than before the rerouting. longer transit means more opportunities for delays due to factors such as weather and port congestion. in november, carriers experienced a median delay of 4 6 days. this has greatly improved, particularly for southeast asia to europe, which peaked at a median of almost 13 days late in february and has improved by 70%. the suez canal was opened in 1869 to connect the north atlantic ocean to the indian ocean through the mediterranean and red seas. since then, it has become an integral trade route for global supply chains and saves 7 20 days of travel that would be needed for vessels to go all the way around africa. interruptions to the flow of vessels can have major impacts to trade as demonstrated in 2021 when a stuck vessel halted operations for six days. with safe passage through the canal hindered, delays on this route have continued. the united states has seen some relief with the droughts impacting capacity through the panama canal lessening, giving a better option than around africa, but europe continues to feel the full force of vessels being unable to pass through the canal. while project44 has made it a priority to provide frequent updates on the red sea crisis, the safety of the crew members on these ships remains top priority in these challenging times. they and their families are in our thoughts. the ongoing houthi rebel attacks on commercial vessels in the red sea have drastically impacted global shipping routes, particularly through the suez canal, leading to significant delays and disruptions. carriers have been forced to reroute vessels, resulting in increased transit times of up to 47% on key trade lanes, especially those connecting asia to europe and the u.s. the rerouting has hit european ports the hardest, while the u.s. east coast has seen less disruption due to the panama canal offering an alternative route. as tensions continue, the safety of front line seafarers remains paramount, while the global supply chain faces ongoing uncertainty. project44 is on a mission to make supply chains work. movement by project44, the only high velocity supply chain platform, enables shippers, lsps and carriers across the globe to reduce costs, optimize operations, deliver an exceptional customer experience and drive greater resiliency and sustainability. having built the industry’s largest and most connected ecosystem, project44 provides visibility into over 1 billion shipments annually for over 1,000 of the world’s leading brands within manufacturing, automotive, retail, life sciences, food & beverage, cpg, and oil, chemical & gas. project44’s commitment to excellence was recognized across organizations and awards including being named the leader in the 2024 gartner magic quadrant and as the “customer’s choice” in gartner’s 2023 voice of the customer report, a 13 time leader on g2’s supply chain visibility grid, google cloud partner of the year, and sap pinnacle award winner. project44 is headquartered in chicago with a diverse team spanning offices around the globe including amsterdam, bengaluru, kraków, shanghai and tokyo. for questions or comments: press@project44.com © 2025 project44

with the usmca officially replacing nafta in 2020, the automotive industry has been significantly affected by dramatic rule changes, including an increase in overall value content requirements, introduction of the labor value content (lvc) requirements, and new categories and requirements for automotive parts. in a cargo systems messaging service (csms) bulletin published on august 9, 2024, u.s. customs and border protection (cbp) announced an updated version of the automated commercial environment (ace) foreign trade zone (ftz) admission cbp and trade automated interface requirements (catair). canada says it will impose a 100% tariff on imports of china made electric vehicles (ev) after similar announcements by the us and european union. with the final months of the year fast approaching, now's the time to check out october training options at the aiag store! simply click the links below to learn more, and secure your spot asap to join us this october. implementation dates for the new apqp 3rd edition and standalone control plan are fast approaching...make sure you're prepared with publication bundles, in person and live virtual training, elearning modules, and more! it's the final countdown...our second annual mexico automotive forum is just days away! from information on warranty claims and the new apqp/control plan to an ev battery warehouse/storage risk project (and much more), our september 12 event is the place to be for updates on key expectations directly from the oems. the hybrid imds, product compliance & sustainability conference will take place october 15 16, 2024, at laurel manor banquet & conference center in livonia, michigan. the theme is "the role of imds in corporate responsibility due diligence." registration is now open, and you can view the full agenda here. the imds steering committee recently shared the following summary of the first revision of “imds 025 recommendation   recycled and biobased content,” which is now available. aiag’s website is a wonderful resource for webinars to continue your education in your professional career. in addition to live webinars, you can watch the webinars listed under available now on your own time and brush up on your knowledge; these recordings of aiag’s past live webinars feature industry experts in corporate responsibility, supply chain, and quality who speak on the latest topics that shape the automotive landscape. aiag’s exclusive webinar “uflpa trade policy: a legal perspective on compliance” is available as a recording so you don’t have to miss out. insight... expertise... results. established in 1982, aiag is a not for profit association where professionals from a diverse group of stakeholders   including retailers, suppliers of all sizes, automakers, manufacturers, service providers, academia and government   work collaboratively to streamline industry processes via global standards development and harmonized business practices. © all rights reserved, automotive industry action group (aiag)

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"so far, it almost seems the houthi attacks are just increasing," said bendik folden nyttingnes, a shipping analyst at clarksons securities. in an email to clients, honour lane shipping (hls) said its carrier contacts are "informally" predicting the red sea situation will not be solved for at least six months, and could last up to a year. "if so, we expect the soaring freight rates and equipment shortage will continue till the third quarter," it advised clients. earlier this week, shell confirmed that its oil tankers are temporarily being rerouted around the red sea, with its ceo telling the wall street journal that a 5 10% price impact is anticipated in the short term. kpler's ship tracking director jean charles gordon estimates that vessels managed or chartered by shell that are being rerouted via the cape of good hope can expect an approximate 10 day delay in their estimated time of arrival. "as several product tanker operators are avoiding the area following the airstrikes on friday, the longer transit times around the cape of good hope could create a supply shortage of tonnage if the situation continues, which in line could push product tanker rates and stocks higher," nyttingnes said. torm , hafnia, stena bulk, hafnia, bp, frontline, equinor, euronav are reportedly among the tanker operators and energy companies choosing to avoid the area following recent warnings. companies including tom, hafnia, scorpio tankers and ardmore would benefit if product tanker rates rose, nyttingnes said. these diversions are immediately eating into egypt's economy, with its gdp reliant on the suez canal, which it owns and operates. the country's other significant source of revenue, travel, has been decimated because of the israel hamas war. "if total suez canal tanker transits are over 8 million barrels per day, the losses to the canal authority are probably in the range of $5 to $7 million depending on the mix of tankers going through," said andy lipow, president of lipow oil associates. this would be on top of the revenue lost by diverted container vessels which are required to pay between $500,000 $600,000 per transit. according to kuehne + nagel, 90% of container ship traffic bound for the suez canal has been rerouted. a drop of 40 50% in all vessel suez crossings as a result of shipping diversions is possible, according to ami daniel, co founder & ceo of windward, which could create a situation similar to the covid supply chain crunch for many retailers reliant on global supply chains. logistics ceos have been warning cnbc that the vessel re routings would result in container crunches. when vessels are late, the containers on those vessels will be late to be processed and reused again for exports. goetz alebrand, head of ocean freight americas for dhl global forwarding, has been warning about an upcoming container crunch for weeks. "more than 4 million containers (twenty foot equivalent units) are bound for longer transit times and will not be ready in the asia pacific for the next loading," he warned. "considering a two week delay in either direction it could mean that four million times of containers will be needed to have availability." the asia to europe route is the most impacted by delays. the ripple effect of this bleeds into the ability of european exports to move out at a fluid rate. "europe has felt the most impact from the situation in the red sea given it is the major trade route for goods coming from asia," said stephen schwartz, executive vice president of wells fargo global receivables and trade finance. "however, with more ships being diverted and taking alternative, longer routes to europe, it is starting to impact global capacity. the delay of containers, reduced capacity, and longer transit times all influence global shipping costs which will start to impact u.s. companies the longer the situation in the red sea continues." paolo montrone, global head of trade for kuehne + nagel, said the container crunch situation currently unfolding will have a knock on effect on european exports. "we anticipate encountering challenges in european terminals as larger ships are expected to arrive outside of their scheduled times. this influx is likely to cause congestion and slowdowns at terminals and ports, subsequently affecting other services such as shipments from europe to the usa." companies with higher value items and time sensitive products are also shifting to the air. "drawing from past experiences, we foresee an increase in the need for air freight services in the upcoming weeks," said montrone. alan baer, ceo of ol usa, said he is expecting the container crunch to impact asia as well. "recently carriers reduced the amount of free time on import containers to help expedite the return of equipment back to asia," said baer. "however, given the longer transit times vessels are experiencing, the market may face a shortage of empties across asia until sailings normalize." the delays of vessels during the pandemic had some retailers like home depot, costco, and walmart hiring charters to speed up deliveries. evelyn fornes, home depot spokeswoman, said it is working with logistics carriers to find alternate routes to limit any impact from the red sea conflict. "as a regular course of business, we always have plans in place for potential disruptions to any of our partners," fornes wrote in an email. "we have a large and diverse supply chain with a number of partners, so we're accustomed to being flexible and agile when there are disruptions. this type of flexibility is what allowed us to adapt and move the unprecedented volumes during the pandemic, despite significant disruptions." "target remains confident in our ability to get guests the products they want and need," a target spokesman said via email. "we leverage production and transportation partners across the globe, and the majority of our freight does not travel through the suez canal. for any freight that's being routed around the suez canal, we're working with shipping partners on alternative paths." while retailers are expressing confidence, tesla, volvo, and michelin have recently said they have had to halt manufacturing. ikea has warned of delays of product, as well as british retailer next and crocs. costco and walmart did not respond to requests for comment. while freight rates for u.s. west coast ports have yet to spike, freight rates for the east coast and gulf are up. u.s. east coast rates are between $5,900 $6,700 for a forty foot container, and rates for the gulf are between $6,300 $6,900 a 40 foot container, according to honour lane. to avoid delays and fees, some logistics companies are re routing to the u.s. west coast, which could result in higher rates eventually. "u.s. west coast space is also getting tight as a substantial number of boxes destined for u.s. east coast /gulf destinations are being re routed through u.s. west coast hubs," wrote hls. "some big beneficial cargo owners like walmart have proposed to increase their allocation to the u.s. west coast and reduce allocation to u.s. east coast." the rates for east coast and gulf coast containers are expected to go up even more. in an advisory to clients tuesday, msc alerted of both general rate increases and peak season increases starting february 12 for import containers from the middle east/indian sub continent to u.s. east coast, gulf coast and san juan. refrigerated containers called "reefers" and dry containers, both 20 foot and 40 foot, will be charged a $2,200 peak season charge per container plus a $1,000 general rate increase (gri) per container. this is on top of whatever container fee the shipper pays. some carriers are reportedly planning to deploy more capacity to west coast for the next contract year, hls says. "as the rate difference and transit time difference between u.s. east coast routings and u.s. west coast routings are both increasing, the conditions are satisfied for carriers to launch premium services to guarantee space and equipment, which is not strange to us." the port of los angeles announced on tuesday, a total of 747,335 containers were processed in december. this marked the fifth consecutive month of year over year growth of the port. even with its 2023 year handling of 8,634,497 twenty foot equivalent units, it was around 13% less than in 2022. got a confidential news tip? we want to hear from you. sign up for free newsletters and get more cnbc delivered to your inbox get this delivered to your inbox, and more info about our products and services. © 2025 cnbc llc. all rights reserved. a division of nbcuniversal data is a real time snapshot *data is delayed at least 15 minutes. global business and financial news, stock quotes, and market data and analysis. data also provided by
middle east tensions supported by as houthi rebels intensify strikes on vessels headed for the suez canal, global shipping prices are soaring, raising fears of product shortages and delays. by peter s. goodman peter goodman has reported extensively on the global supply chain since the early months of the covid 19 pandemic. stephanie loomis had hoped that the chaos besieging the global supply chain was subsiding. the floating traffic jams off ports. the multiplying costs of moving freight. the resulting shortages of goods. all of this had seemed like an unpleasant memory confined to the covid 19 pandemic. no such luck. as head of ocean freight for the americas at rhenus logistics, a company based in germany, ms. loomis spends her days negotiating with international shipping carriers on behalf of clients moving products and parts around the globe. over the last few months, she has watched cargo prices soar as a series of disturbances have roiled the seas. late last year, houthi rebels in yemen began firing on ships entering the red sea en route to the suez canal, a vital artery for vessels moving between asia, europe and the east coast of the united states. that prompted ships to avoid the waterway, instead moving the long way around africa, lengthening their journeys by as much as two weeks. then, a severe drought in central america dropped water levels in the panama canal, forcing authorities to limit the number of ships passing through that crucial conduit for international trade. in recent weeks, dockworkers have threatened to strike on the east and gulf coasts of the united states, while longshore workers at german ports have halted shifts in pursuit of better pay. rail workers in canada are poised to walk off the job, imperiling cargo moving across north america and threatening backups at major ports like vancouver, british columbia. the intensifying upheaval in shipping is prompting carriers to lift rates while raising the specter of waterborne gridlock that could again threaten retailers with product shortages during the make or break holiday shopping season. the disruption could also exacerbate inflation, a source of economic anxiety animating the american presidential election.

agree & join linkedin by clicking continue to join or sign in, you agree to linkedin’s user agreement, privacy policy, and cookie policy. collaborating with clients and empowering employers to provide exceptional healthcare solutions ‘it’s all happening again.’ the supply chain is under strain: as houthi rebels intensify strikes on vessels headed for the suez canal, global shipping prices are soaring, raising fears of product shortages and delays. https://ow.ly/gqyx30secba to view or add a comment, sign in supply chain planning leader delivering breakthrough value to global manufacturers with seamless connected planning great article from peter s. goodman.