The disruption is already causing long delays and increased freight costs, which are predicted to get worse, especially with the Chinese New Year on the horizon where demand is expected to remain high and space at a premium.
We advise customers to be mindful due to Chinese New Year many factories had planned to close early so staff can travel home and many local trucking companies will experience the same with availability of drivers also diminishing in the run up to the holiday. This is always the case but this year is likely to be exasperated by the delays to shipments caused by current market / political conditions.
Carriers continue to react to the situation in the Red Sea and take the option to bypass the Suez Canal, taking the alternative route around the Cape of Good Hope, this could add approximately 10 -14 days to transit times and have longer term impact on schedule reliability especially if the return trip is also then via the Cape.
Our team are working very closely with their contacts to ensure minimal disruption as possible in a very fluid situation, if you are concerned about any of your current shipments, please contact your account manager directly.
To help you and us prepare for future shipments that might be affected by the Chinese New Year peak, as well as the current disruption, please speak to your account manager regarding your shipment plans and provide forecast where ever possible.
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