Red Sea Security and Operational Update

Further to our last update, shipment diversion from the Red Sea continue to rise as the security on international waters off the Coast of Yemen remains chaotic with an increase in attacks over the last few days.  

Vessel operators are continuing to avoid Red Sea transits and divert ships via the Southern African continent. The average impact on expected transit times continues to be 10-15 days, depending on trade routes and congestion at relay ports in Europe and North Africa. 

As volumes start rebounding post Lunar New Year in the Far East, we continue to monitor port congestion and equipment imbalances that are expected to deteriorate throughout the global container network, particularly in Europe and the North American West Coasts.  

US West Coast ports and Canada’s Port of Vancouver have been impacted by rising container volumes since early January as importers divert East Coast traffic.  

For now, the situation is manageable for carriers, terminals and railways, albeit with a general expectation that delays, costs and transit times will continue to rise as long as Red Sea diversions remain. 

 

Delmar will continue to closely monitor this evolving situation and share timely information as it becomes available to help our clients make informed financial and relevant business decisions. 

 

For additional information and assistance, please contact your local Delmar Representative.