Red Sea Attacks Continue As Capacity & Equipment Is Squeezed

Despite naval vessels patrolling the Red Sea region, attacks on commercial ships have been continuing and we are now witnessing a shortage of capacity and equipment on Asia-Europe tradelanes.

This week, two US flagged Maersk container ships were attacked and forced to abandon their naval convoy and leave the Red Sea area. The Maersk Detroit and Maersk Chesapeake were being escorted by the USS Gravely when Houthi militants attacked them with a barrage of missiles.

There are currently over 20 naval vessels patrolling the Red Sea and the US and UK have been conducting airstrikes on Houthi targets. However, last week President Biden admitted that these airstrikes have not been preventing attacks.

As a result, most carriers are continuing to route vessels around the Cape Of Good Hope and global supply chains are being impacted with delays, low capacity, and equipment shortages.

While all carrier alliances are now reportedly adding several vessels into Asia markets during this quarter, we are expecting severe capacity shortages up to Chinese New Year and beyond. Inevitably, this is likely to see rates continuing to rise.

The team at Croft Cargo are monitoring developments closely and are working hard to ensure there is minimal disruption to customer's supply chains.

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