Cover Story hope for a sustainable resolution in the near future and do all we can to contribute towards it , the situation currently remains untenable , and we encourage customers to prepare for complications in the area to persist and for there to be significant disruption to the global network .”
CMA CGM has adjusted its services from North Europe and the Mediterranean to India and Oceania . Hapag-Lloyd said it has been forced to suspend its GEM service connecting the East Mediterranean and Turkey with the Persian Gulf via the Suez Canal and Red Sea “ until further notice ,” as continuing the route would require double the number of vessels to maintain a weekly service .
While off-schedule ships are periodically crowding marine terminals , the Port of New York and New Jersey is not seeing any major impact from the longer transits as vessels divert from the Suez Canal . The minimal vessel bunching is not creating any measurable slowdown at the port , according to Bethann Rooney , port director for the Port Authority of New York and New Jersey .
“ All of our services that go through the Suez Canal have for the most part decided to go around the Cape of Good Hope ,” Rooney said Jan . 29 during a state of the port event in Jersey City , NJ . “ That adds between 10 and 14 days to the transit . But it ’ s at least a consistent addition of that time .” There likewise has been little impact on European port operations so far , with vessel bunching in Hamburg , Germany , tied to poor weather rather than equipment dislocations , and Le Havre — France ’ s largest container port — able to handle the arrival of several ships out of their windows in the last two weeks of January .
Importers in Europe and North America have had a bumpier ride , with shipments delayed and spot rates spiking , not to mention war risk surcharges and other additional fees tied to the disruption . Demand may be modest in the run-up to the traditional Chinese New Year manufacturing lull , which began Feb . 10 ., but that ’ s cold comfort for exporters in Asia and India unable to get space on ships .
Asia – Europe shipments are facing vessel delays of nine to 20 days , plus another four to five days of wait time for berthing windows , said Markus Panhauser , head of ocean freight / Europe at DHL Global Forwarding . Inventories among European importers that grew during the pandemic supply chain disruptions and weak consumer demand last year have provided some buffer against the extended transit times , but that is now being eroded .
“ Most customers are operating with a safety stock of 30 days , [ but ] this stock is being absorbed by the delays , and customers have ordered additional goods to refill their safety stocks , fueling the space shortage ,” Panhauser said .
“ It is extremely complicated ... But we are making it work . Commerce is flowing .”
Contracts in limbo
While Red Sea diversions continue to keep spot market rates elevated , carriers have been reluctant to offer longterm Asia – Europe contracts with the prices at unattractive levels , said Tobias Burger , COO of Germany-based global forwarder Dachser .
However , forwarders and container lines warn that could change if another disruption occurs — be it sharper
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