RED SEA CRISIS DISRUPTS GLOBAL SHIPPING, ESCALATES DELAYS

THE Association of International Shipping Lines (AISL) said the Red Sea crisis has severely disrupted global shipping, causing delays, soaring costs and increased carbon emissions.

AISL President Patrick Ronas said that since December 2023, attacks on vessels have forced ships to reroute around the Cape of Good Hope, affecting major ports such as Jebel Ali, Singapore, Port Kelang, Rotterdam, Barcelona, Ningbo and Nansha.

"About 30 percent of trade goes through the Suez Canal. Longer routes required by the current situation have increased travel distances for cargo and tankers by up to 53 percent, causing a rise in CO2 emissions due to the additional fuel burned," Ronas said during The Manila Times Maritime Forum.

These detours add 10 to 12 days per trip, significantly increasing charter rates and exacerbating the shortage of empty containers needed for Asian exporters. "We are seeing a cascading effect of delays, with vessels arriving off-schedule at smaller downstream ports in Asia," he noted.

Ships have been arriving off-schedule in Singapore after longer voyages around the African Cape due to the Red Sea crisis and missed weekly sailings. Carriers are grappling with a shortage of tonnage to handle the extended transit times caused by the diversions.

Ronas added that the recent US tariff hike on $18 billion worth of Chinese goods has intensified congestion at critical transit ports like Singapore as exporters rush to ship products before the deadline.

Meanwhile, AISL continues to find solutions to issues affecting its customers through technology and automation, reducing touchpoints and cutting down delays and costs.

2024-07-02T16:17:28Z dg43tfdfdgfd