Due to the current escalation of problems in the Red Sea, shipowners have stopped using the Suez Canal. Attacks on ships are increasing. As a result, some shippers have suspended their ships and are waiting, but most have announced that the ships will temporarily circumnavigate Africa on their way between Europe and Asia. This has a major consequence: in addition to the expected price increase, the transit time is being extended very dramatically. Specifically, by about two weeks, which represents an increase of about 50 percent. Therefore, a higher use of rail connections is now expected. PST CLC Mitsui-Soko provides groupage containers with regular departures and is able to provide immediate service for entire containers both from and to China.
World trade is currently facing a double blow in the form of problems in the Suez and Panama Canals. “Many of the world’s leading shipping companies have rerouted their ships around Africa’s Cape of Good Hope to avoid the Red Sea and not pass through the Suez Canal. This, of course, increases the shipping time as well as the shipping costs for all parties involved. Transport companies have naturally started to introduce additional surcharges to cover these costs,” says Petr Rožek, Executive Director of the Association of Forwarding and Logistics of the Czech Republic.
Transit time by sea up to two weeks
According to Jan Bláha, Director of Transportation at PST CLC Mitsui-Soko, not only are attacks on oil tankers increasing, but several attacks on container ships have already been recorded. As a result, many shipowners have decided not to use the Suez Canal until the situation improves.
“Ships will be diverted around Africa. This will mean major delays. We anticipate that transit time by sea will increase by up to two weeks. The second negative factor is the increase in prices. Due to international conditions in maritime transport, the price change will also apply to goods that are already loaded on ships that will be diverted. Shipowners are therefore entitled to this surcharge,” says Jan Bláha.
Full container transport and groupage containers
He added that an alternative for sea container shipments from and to China is a rail connection, which is relatively fast in the current situation. It takes about 15 to 20 days and is carried out both in full container transports and in groupage containers. “Interest in rail transport is now growing, prices are also going up, but it is still a convenient alternative to sea transport. Rail transport is faster and currently safer,” says Jan Bláha.
