Overview
Global shipping lanes continue to face pressure as instability in the Red Sea forces many carriers to avoid the Suez Canal route. This disruption is reshaping global trade flows and increasing operational complexity for logistics providers worldwide.
What’s Happening
Several major shipping lines are opting for longer routes around the Cape of Good Hope to ensure vessel and crew safety. While this mitigates risk, it significantly extends transit times and fuel costs.
Impact on Supply Chains
- Increased lead times for Asia–Europe cargo
- Higher fuel and insurance costs
- Tightened vessel capacity on alternative routes
- Potential delays in time-sensitive shipments
What Shippers Should Consider
Shippers are advised to revisit delivery timelines, assess cost impacts, and remain flexible with routing options. Proactive communication between partners remains critical in minimising disruption.
