Red Sea Update

All,

With the weekend altercations, all the carriers have now re-committed to staying out of the Suez Canal and moving around the horn of Africa.

In addition to the attached, you'll also note that on the Far East, trade lane carriers are continuing to do blank sailing and reducing space (resulting in an approximately $1000 GRI in this lane)

Essentially, back to square one which means:
  1. Transits and vessel/booking availability will now be drastically changed (and volatile from India/Subcontinent and the Middle East)
  2. Globally, equipment and space will be much tighter than before
  3. January spot rates will be much higher in general and we will have to see how the market responds moving into February
Two sets of surcharges are starting as of January 1st:
  • The Panama Canal Surcharge has increased to $300 and will be charged on anything transiting the Panama Canal as a stand-alone/separate charge
  • The Emergency Risk/Routing/Contingency charge example is attached @ $200/20' and $400/40' - most carriers are at this number
The larger increases will not take effect until after Jan 15....18th, 21st , etc. -

For example below:

CAC - CONTINGENCY ADJUSTMENT CHARGE
SCOPE: IMPORT MIDDLE EAST / INDIAN SUB-CONTINENT TO USA
Effective date January 18th, 2024
Please be advised that Mediterranean Shipping Company has filed and will implement the following Contingency Adjustment Charge (CAC) effective January 18th, 2024, as below.
Cargo from: India, Pakistan, Sri Lanka, Bangladesh, Middle East (Saudi Arabia (only Dammam & Jubail), Bahrain, Kuwait, Iraq, Qatar, Oman, United Arab Emirates)
To: USA EAST COAST / USA GULF COAST / SAN JUAN
USD 1500 x TEU.

PSS- PEAK SEASON SURCHARGE
SCOPE: IMPORT MIDDLE EAST / INDIAN SUB-CONTINENT TO USA
Effective date January 22nd, 2024
Please keep in mind that Mediterranean Shipping Company has filed and will implement the following Peak Season Surcharge (PSS) effective January 22nd, 2024, with the following quantum and effective date for all shipments as below
Cargo from: IPAK (India / Pakistan / Sri Lanka / Bangladesh) & MIDDLE EAST (Bahrain / Iraq / Kuwait / Oman / Qatar / United Arab Emirates / Saudi Arabia (Dammam & Jubail only))
To: USA EAST COAST / USA GULF COAST / SAN JUAN
USD 800 x Dry Container

GENERAL RATE INCREASE (GRI)
SCOPE: IMPORT MIDDLE EAST / INDIAN SUB-CONTINENT TO USA
Effective date January 22nd, 2024
Please be advised that Mediterranean Shipping Company has filed and will implement the following General Rate Increase (GRI) effective January 22nd, 2024, as below.
Cargo from: IPAK (India / Pakistan / Sri Lanka) & MIDDLE EAST (Bahrain / Iraq / Kuwait / Oman / Qatar / United Arab Emirates / Saudi Arabia (Dammam & Jubail only))
To: USA EAST COAST / USA GULF COAST / SAN JUAN
USD 800 X 20’DV
USD 800 X 40’DV/HC

Article from : https://gcaptain.com/maersk-pausing-red-sea-transi...

Maersk Halts Red Sea Voyages ‘Until Further Notice’
Mike Schuler
Maersk said it will continue pausing transits through the Red Sea and Gulf of Aden until further notice following an attack on one of its vessels over the weekend.
No injuries were reported after the M/V Maersk Hangzhou was struck by a missile on Saturday night and hours later was swarmed by four small boats, forcing the ship’s embarked security team to fire on the attackers. Three of the boats were neutralized by a U.S. Navy helicopter that itself was fired upon.

The Maersk Hangzhou was traveling through the Bab el-Mandeb Strait en route from Singapore to Port Suez, Egypt when the incident took place. The vessel and crew are reported safe. The attack also prompted Maersk to suspend transits for an initial 48 hours while it assessed the situation.
The incident was the latest attack launched by the Iran-back Houthis in Yemen against commercial ships in international waters in the Southern Red Sea.

“An investigation into the incident is ongoing and we will continue to pause all cargo movement through the area while we further assess the constantly evolving situation. In cases where it makes most sense for our customers, vessels will be rerouted and continue their journey around the Cape of Good Hope,” Maersk said in its update.

“We remain committed to minimizing the impact on our customers’ supply chains and will continue to keep you updated on the situation,” the update added.

The attack on the Maersk Hangzhou comes after Maersk had decided to resume transits through the region following the establishment of the US-led Operation Prosperity Guardian (OPG) naval coalition, while some other carriers have opted to continue to reroute ships around the Cape of Good Hope due to the ongoing safety concerns.

Maersk originally suspended transits through the Red Sea back on December 15 a day after a near-miss missile attack on its containership Maersk Gibraltar. Maersk’s decision led to other operators also suspending voyages and redirecting ships around the Cape of Good Hope. Since then about half of the containerships that normally transit the region have been rerouted.

The U.S. Central Command said the attacks on the Maersk Hangzhou marked the 23rd and 24th illegal attacks by the Houthis on international shipping since the November 19 hijacking of the Galaxy Leader car carrier, which continues by be held in Yemeni waters.

Additional Material:

Space Situation 2024 01 02

TP Service Rotation

Panama Canal Surcharge

Customer Advisory Notice of Red Sea Diversion Surcharge

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Charge Charts

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