Maritime crisis : What’s the impact on B2b companies ?


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Date of publication : 23/01/2024

Reading time : 3 Minutes

Summary

Missile and drone strikes against merchant ships of all flags are seriously disrupting intercontinental maritime traffic.

In order to keep you informed and maintain ongoing transparency, we would like to share with you important information on the context of the current maritime crisis.

In recent weeks, we have seen an increase in attacks on shipping vessels between Africa and Yemen, leading to tensions in the Red Sea. This situation increases the risk of a large-scale maritime crisis, which could affect the global economic recovery.

However, in response to these disruptions, shipping companies around the world have adjusted their routes, avoiding the Red Sea and opting for the Cape of Good Hope. Although this measure is necessary to ensure transportation safety, it results in additional costs and delays due to long distances.

What is the reason for the maritime crisis in the Red Sea?

The Red Sea, particularly at its southern end near the strait, has become an area of ​​tension for the transport maritime due to missile and drone attacks carried out by the rebels.
 

Faced with attacks on container ships, major shipping companies are suspending crossings through the Red Sea to ensure the safety of crews and goods. This situation risks impacting transport costs for importers and exporters:

Faced with these challenges, we recommend that you:

  • Take into account potential delays and adjust your schedules accordingly.
  • Anticipate an increase in maritime transport costs.
  • Closely monitor developments in the Red Sea to make informed decisions.
  • The additional costs linked to these diversions and special war insurance are passed on to customers, thus affecting import/export operations.

The Red Sea, particularly its southern end near the strait, has become an area of ​​tension for shipping due to rebel missile and drone attacks.

Faced with attacks on container ships, major shipping companies are suspending passage through the Red Sea to ensure the safety of crew and goods. This situation can affect transport costs for importers and exporters:

Faced with these challenges, we recommend:

  • Take into account potential delays and adjust your schedules accordingly.
  • Anticipate an increase in maritime transport costs.
  • Closely monitor developments in the Red Sea to make informed decisions.
  • The additional costs linked to these diversions and special war insurance are passed on to customers, thus affecting import/export operations.

What are the positives and negatives of shipping?

Shipping is a popular way to import and export goods and merchandise, especially consumer goods, over long distances. It has several advantages:

  • Shipping is a very cost-effective way to transport heavy and bulky goods.
  • It is almost 4 to 6 times cheaper than air transportation.
  • When using sea transport, customs and VAT are considerably cheaper than air transport.
  •  Ocean freight offers many different transportation options, such as transporting the entire container or splitting it among several different loads.
  • The main advantage is that you can send large items by sea, which can include furniture or even vehicles.
  • Goods can be shipped from any location by specialized operators.

Ocean shipping is typically used by businesses that ship a large quantity of goods at one time. This mode of transport lasts the longest, as well as being ideal for transporting bulk items such as coal and minerals.These weaknesses are as follows:

  • Very slow, which sometimes makes delivery times difficult
  • It is difficult to track the exact location of transported goods
  • Customs and excise
  • Domestic door to door shipping is required

Reassurance for all our clients on the maritime crisis

To keep you informed and maintain constant transparency, we would like to share with you some important information on the current maritime context. 

In recent weeks, we have seen an intensification of attacks on transport vessels between Africa and Yemen, generating tensions in the Red Sea. This situation suggests the risk of a widespread crisis, which could have repercussions on the global economic recovery. 

However, in response to these disruptions, shipping companies around the world have adjusted their routes, avoiding the Red Sea and opting instead for the Cape of Good Hope. While this measure is necessary to ensure the safety of shipments, it does entail additional costs and delays due to longer routes.

We understand that these circumstances may give rise to concerns about delays and costs. We want to assure you that our dedicated team works tirelessly to minimize the impact on your operations. Thanks to our experience and mastery of deadlines, we can ensure that you are not affected by these changes. We do our utmost to ensure that your business remains unaffected.

Transparency is at the heart of our relationship with you. We would like to share this information with you so that you are fully informed of the general framework in which we are operating at the start of 2024. Your trust is precious, and we're doing everything we can to keep our operating conditions as stable as possible. 

Please do not hesitate to contact us if you have any specific questions or concerns. We're here to help.

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