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Red Sea Conflict Disrupts Shipping, Extends Container Transit Times

Red Sea Conflict Disrupts Shipping, Extends Container Transit Times

The escalating conflict in the Red Sea region has severely disrupted international shipping routes, leading to significantly higher transit times for the container shipping sector, according to a new report from supply chain visibility platform Project44.

Since the onset of attacks by Yemen-based Houthis in November, hundreds of ships from all major carriers have altered their courses to avoid the area.

The Suez Canal, one of the world’s busiest sea routes, has experienced an unprecedented drop in traffic. An analysis of May 2024 figures revealed a startling 80% decrease in passages compared to May 2023. The report suggests this trend is unlikely to reverse soon, with the looming peak shipping season unlikely to drive a resurgence of carriers using the route.

Carriers are now adopting alternative routes around Africa or through the Panama Canal, significantly increasing transit times. Container transit times for routes from China to Europe, Southeast Asia to Europe, and Southeast Asia to the US East Coast have extended by a median of 10-14 days. Project44 indicates these transit times represent the “new normal” as carriers continue to avoid the Red Sea.

The conflict’s impact has rippled across the United States and Europe, with overall shipping times increasing by almost two weeks. Despite initial variability in schedules post-attacks, carriers have now adjusted to the new routes, with delays reduced to 4-8 days from initial highs.

Project44 advises shippers to account for these additional transit days in their planning to ensure freight arrives in time for the high-demand retail peak season.

Img Source: EIA.Gov
Data source: U.S. Energy Information Administration using calculations from Vortexa

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