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Red Sea operations: Update 21 December

As communicated in our Advisory of 18 December, commercial carriers have paused or rerouted operations through the Red Sea, east and west bound, until further notice, in response to the recent attacks on commercial vessels in the area.

Awaiting a joint naval response to restore safe container traffic through the Red Sea, the current situation is that the Suez Canal is effectively closed for commercial vessels. This means that all normal routings via the Suez are halted or rerouted around the Cape of Good Hope, adding an extra 10-14 days per journey.

In combination with the severe drought in the Panama Canal, the expected short-to-medium term consequences of the current disruptions are numerous and include increasing port congestion and an increasing shortage of equipment, introduction of additional surcharges by carriers as a result of higher fuel and insurance costs. The longer journey south of Africa adding 3.5k nautical miles will also impact tax on carbon emissions from shipping.

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.

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