All you need to know about the Red Sea Shipping crisis – and what to do if it’s affected you.
30% of the world’s container trade passes through the Suez Canal in the Red Sea, making it one of the world’s busiest shipping lanes.
But attacks from Houthi rebels mean that vessels destined for Europe are having to redirect. This means a detour of roughly 4,000 miles around the Cape of Good Hope in the southern tip of Africa.
The result? Significant delays and soaring costs.
Here’s all you need to know about the crisis in the Red Sea, including the impact it’s having and what you can do to minimise disruption within your organisation.
What is the Red Sea Shipping crisis?
It’s been estimated that almost 300 commercial ships a week are having to redirect their routes to avoid the Suez Canal.
This is a weekly drop in traffic of about 55%, according to data from AXSInsights.
The disruption comes as a result of targeted attacks, specifically on commercial vehicles. The Houthi militants carrying out the attacks claim to be targeting ships heading for Israel, as a response to ongoing conflicts in the Middle East.
By hijacking ships and using missiles and drones to target vessels, the rebels have turned a critical shipping lane into the most dangerous area in the Red Sea.
It’s no surprise, then, that many operators are opting to divert away from the area.
What impact is the Red Sea Shipping crisis having?
To avoid the risk to vessels, cargo and crew, ships are having to travel thousands of extra miles.
As a result, each trip is taking an additional 10 to 12 days.
The additional fuel costs are predicted to be costing companies up to $1 million more per journey. Then, there are substantial delivery delays that have to be accounted for, and for potentially high-value products.
But it’s not just Shipping – the crisis in the Red Sea is having an impact across industries.
Manufacturing, Metals and Engineering organisations, for example, are all facing shortages of raw materials.
Essentially, for any organisation that relies on imports, there are big issues (and costs) to contend with.
How to deal with disruption
Understandably, this is a concerning time. Thankfully, there are things you can do.
If your organisation is impacted by the ongoing crisis in the Red Sea, it’s important to put measures in place to reinforce your resilience.
The best way to do this? By ensuring your teams are as strong as they can possibly be.
Looking to take on and nurture talent with the experience to support your organisation through times of crisis?
Work with a recruitment agency that understands the demands and challenges of your industry, and has access to extensive talent pools of leading industry talent…
To find out more, contact Aspion Search today:
Call us: 0333 360 1100
Email: info@aspion.co.uk
