SUEZ BLOCKAGE – THE NEW CHALLENGES

suez canal

Reports of the Suez blockage easing and shipping getting back to normal have been greatly exaggerated.

At the time of writing some 400 vessels are queuing to pass through the Canal, causing delays for shipments transshipping in South East Asia bound for Australia.

We have been advised by our International agents that , in their discussions with shipping lines YML, COSCO,HMM and EMC, they have been told these lines will cancel vessels to the Middle East and Asia and will concentrate there capacities on the Red Sea , America’s and Europe trades.

This will no doubt put pressure on equipment (containers) for the Australian trade which could force Ocean Freight rates to increase, just as Importers were seeing reductions in these rates.

We believe that the crucial date will be the 3rd week in April to gauge the extent of any increases.

Just as things were showing signs of settling down, space was becoming available and freight rates were dropping, the dramas of 2020 are starting to reappear.

We at GPSM are always mindful that shipping information to our clients is of vital importance, especially in these turbulent times. We will continue to monitor all situations and keep you updated with the most current information as it comes to hand.