21/12/2023
RENEWED SHIPPING ROUTES. ARE BEING DRAWN, LENGTHENING THE SUPPLY CHAIN AND INCREASING SHIPPING COSTS.
The landscape of global shipping is changing. Extended shipping paths are being charted, elongating the logistical network and escalating expenses.
CHALLENGES IN THE SUPPLY CHAIN
Supply chain set to face another major challenge once again as Asia to Europe sea freight rates are expected to soar. This is due to the impact of some westbound voyages being paused and others being diverted around Africa to avoid increasing attacks by Yemen-based Houthi rebels on merchant shipping approaching the Suez Canal. These voyages will extend travel times by about 10-12 days.
The risk of war will force ships to travel in certain areas faster, contributing to increased fuel consumption and consequent costs. Moreover, carriers that have instructed their ships to pause voyages until further notice, anticipating an international US-led task force restoring a safe approach to the waterway, could ultimately see transit times for these vessels extended even further.
IMPACT ON SEA FREIGHT RATES
Sea freight rates will increase significantly, mainly import sea freight rates, and carriers will apply some war risk surcharges. The impact on supply chains will be compounded by the bunching of ships at ports, landside congestion, and equipment shortages, reminiscent of the March 21 grounding of the Ever Given, which blocked the Suez Canal for six days. Several weeks, if not months, of supply chain disruption, look likely, with ships and containers in the wrong places during the Chinese New Year build-up, which starts on February 10.
PAM CARGO SEA-AIR SOLUTION
PAM Cargo offers you SEA-AIR solutions from Southeast Asia, the Fareast, and the Indian Subcontinent to Europe and North America via Dubai, Singapore and Los Angeles. We have been offering our customers customized SEA-AIR solutions for their shipments from Asia since 2014, enabling savings of around 30% in costs, 50% in time, and 45% in CO2 emissions compared to air freight.
PAMCARGO HELPS YOU BRING FLEXIBILITY AND CONTROL TO YOUR SUPPLY CHAIN DURING CHALLENGING TIMES.
WHO IS YOUR CONTACT
Are you interested to know more about SEA-AIR to fix the challenges in your supply chain ?
TERESA NGUYEN
SEA-AIR MANAGER
[email protected]
+84 902576703
