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Impact of the Current Situation in the Red Sea

We would like to inform you about the current situation in the Red Sea and the resulting consequences.

On December 15, 2023, the MSC Palatium III owned by shipping company MSC was attacked by a drone in the Strait of Bab al-Mandab and subsequently caught fire. The ship "Al Jasrah" of the shipping company Hapag-Lloyd was also attacked and damaged. Fortunately, no human beings were harmed in either case.

These incidents have prompted various shipping companies, including Maersk, CMA CGM, MSC, Hapag Lloyd and HMM, to make changes to the shipping route through the Suez Canal. These shipping companies have instructed their vessels in the region to anchor in a safe place and await further instructions. Alternatively, the passage through the Suez Canal should be avoided and the route via the Cape of Good Hope used instead. It is very likely that other shipping companies will take similar steps in the near future.

The impact on transportation costs and transit times in container shipping cannot be accurately predicted at this time. That depends on developments in the near future and any measures taken to contain the danger in the southern Red Sea. However, it is possible that the measures taken will lead to a significant increase in insurance and fuel costs as well as an extension of transit times.

We will provide information on further developments in the region at the appropriate time. If you have any questions about one of your shipments or require further information, our contact persons will of course be happy to assist you.

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