December 19, 2023 – In response to escalating tensions and conflict in Israel, shipping operators ferrying cargo from Asia and the Middle East to Europe have been forced to reroute their vessels, leading to a spike in freight charges.
The latest reports indicate that the traditional passage through the Red Sea, which offers the most direct maritime path to Europe, has become increasingly risky. To safeguard their crew, cargo, and vessels, shipping companies are now diverting around the Cape of Good Hope. This longer journey not only avoids the conflict zones but also significantly impacts transit times and operational costs.
The diversion results in an additional 12-15 days of travel on top of usual transit times. To address the increased expenses stemming from the longer route, a Contingency Surcharge has been introduced. The new fee is impacting freight costs for shipments from the Indian Sub-Continent—including India, Pakistan, Sri Lanka, Bangladesh—and the Middle East en route to European, Scandinavian, Baltic, Mediterranean, Adriatic, and Black Sea destinations.
This surcharge has been applied to all new bookings starting today, December 19, 2023, and is indicative of the broader economic repercussions of the conflict. The added costs are likely to be felt down the supply chain, potentially leading to increased prices for goods and materials imported into Europe from affected regions.
The conflict in Israel has underscored the vulnerability of global trade to geopolitical unrest. Shipping companies are working diligently to navigate these challenges, but the situation remains fluid, and the industry is bracing for further disruptions if the conflict continues.
Customers with cargo on these affected routes are advised to contact their freight agents or customer service representatives for detailed information and assistance. As the situation develops, further updates are expected regarding transit times and any additional routing changes.
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