Urgent Customer Notice –
Suez Canal Bypass

The Red Sea, a crucial nexus for global trade linking Asia, Europe, and Africa, has encountered significant disruptions and security challenges. Recent incidents disrupting maritime traffic in this region have heightened concerns. These incidents, believed to be tied to the Israel/Palestine conflict, have targeted commercial vessels, escalating tensions and posing risks to shipping operations.

Key events in December include attacks on both naval and commercial vessels in the Red Sea. Most notably, container carriers faced targeted attacks:

• On December 14th, Maersk Gibraltar, a Hong Kong-flagged container vessel owned by Maersk, narrowly avoided a missile attack in the Bab al-Mandab strait.
• On December 15th, Al Jasrah, a Liberian-flagged vessel owned by Hapag Lloyd, was struck by a missile from Yemen in the Bab Al-Mandab strait, sustaining damage and losing at least one container overboard. Thankfully, no crew members were injured.
• The MSC Alanya and MSC Palatium III, both Liberian-flagged vessels owned by Mediterranean Shipping Company and Messina Line respectively, also faced near-miss and direct missile attacks causing damage.

These incidents have heightened the risks associated with shipping in the region. Consequently, major container carriers (VOCCs) have taken measures to safeguard their employees and vessels operating in these waters.

Carrier Responses:

• Maersk, CMA CGM, and MSC have announced rerouting of some vessels originally slated to transit the Suez Canal, now redirecting via the Cape of Good Hope in South Africa, adding substantial transit time.
• HAPAG-LLOYD has suspended all sailings through the Red Sea until further notice.
• Various other carriers such as ONE, ZIM, Yang Ming, and HMM have made statements regarding bypassing or avoiding the Red Sea and Suez Canal.
• Evergreen, COSCO, and OOCL have ceased accepting cargo bound for Israel immediately and until further notice, though there’s no confirmation from COSCO and OOCL on suspending service through the Red Sea.

Looking Ahead:

The impact of this conflict on global trade is expected to be significant, with anticipated severe delays, prolonged vessel repositioning, and notably increased costs for services transiting the Red Sea. While the full scope of implications remains unclear, DEAN World Cargo remains committed to keeping all stakeholders updated and collaborating closely with customers and partners to devise optimal solutions amidst this evolving situation.

Should you have any questions in regards to the above, please do not hesitate to contact your DEAN World Cargo Account Manager.