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Red Sea operations: Update 5 January

In continuation of commercial carriers having paused or rerouted operations through the Red Sea in response to the recent attacks on commercial vessels in the area, the overall situation remains largely unchanged.

container vessel sailing in blue waters

Since our last Advisory of 21 December, the overall situation is largely unchanged as the Suez Canal is still not a viable trade route for commercial vessels. As long as the Houthi rebels are shooting missiles at cargo ships in the Red Sea, we expect that carriers will not resume routings via the Suez.

As anticipated, carriers are stringently implementing surcharges due to the overall increased cost situation of higher fuel and insurance costs, while operating via the Cape of Good Hope. This also applies to trades which have no direct link to the Red Sea, such as transatlantic or transpacific freight.

As a precautionary measure to avoid attracting the focus of the rebels, some carriers no longer accept cargo bookings to Israel or with an Israeli receiver.

At this point in time, it is still impossible to predict when the situation will be resolved.

At DSV, we remain in close contact with our carriers in order to handle the situation in the best possible way and minimise the impact on your business. We will continue to monitor developments and will keep you updated if the situation changes.

We appreciate your understanding under these critical circumstances. Should you need any further information, please reach out to your local DSV representative.

Any questions?

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