Global shipping routes are being significantly impacted by the escalating crisis in the Red Sea. Attacks on shipping vessels have increased as geo-political tensions in the region escalate, disrupting global trade routes. As a result, supply chain and logistics industries are certainly feeling the effects.
The Red Sea is a critical route for shipping vessels carrying goods between Asia and Europe. The hostilities in the region and attacks on vessels has led several commercial shipping companies such as Maersk, Hapag Lloyd, MSC and CMA CGM to suspend their transits in the Red Sea, choosing instead to route their ships around the southern coast of Africa for the safety of their crews, vessels and the cargo they are carrying.
This is affecting household goods shipments in the following ways:
- Significant increase in transit times of up to two weeks causing delays to arrivals and affecting delivery schedules
- Higher shipping costs due to increased fuel consumption, extended travel time and escalated insurance costs being passed on to the end consumer
- Potential equipment shortages due to longer transit times and disruption to normal trade routes possibly adding additional delays and cost if household goods must be stored while waiting for containers or vessels
Kinetix is closely monitoring the situation and we are working to manage these challenges and their impact. We are committed to:
- Providing our clients with the most current information on developments in the area and how their shipments may be impacted
- Finding alternative options for routing and shipping with an aim to minimize the impact of delays and cost increases
- Continuing to provide updated shipping timelines, allowing clients and their transferees to plan and prepare accordingly
While we continue to hope for a swift resolution to the Red Sea conflict, the situation currently remains volatile. As such, we encourage our customers to prepare for complications in the area to persist and for there to be significant disruption to their household goods shipments. Our team is on hand to support with your planning, should you need assistance.