The situation in the Red Sea is escalating amid threats on cargo ships by Houthi rebels, and the impact can be felt across client HHG shipments in and out of the region.
In collaboration with our freight forwarding company, Movers International (MI), and our local suppliers, we have developed the following advisory detailing how this may affect the transit of your mobile employees’ goods.
Major shipping companies have implemented the following temporary safety measures, which are effective immediately:
- Most major shipping lines – including MSC, Maersk, CGM, Zim, Hapag-Lloyd, and others — are avoiding the Suez Canal, Red Sea, and the general region, instead routing vessels around the southern horn of South Africa or docking vessels in safe locations to wait out any threats.
- The new US-led military effort Operation Prosperity Guardian aims to protect shipping, but uncertainties persist.
- Shipping Line OOCL will no longer accept Israeli cargo until further notice.
- Continuing large-scale diversions could cause supply chain disruptions like the Suez Canal blockage in March 2021.
Shipments traveling from and to Europe, India, and Asia are particularly hard-felt at present. In addition to increased transit times, we’re already seeing additional charges being levied by the steamship lines for the longer journey, congestion, and related risks. Depending on the size of the shipment, we may start to see an increase in air shipments from/to these regions in lieu of sea shipments.
Weichert Workforce Mobility, in partnership with Movers International, will continue to serve you and navigate the situation to the best of our ability. We appreciate your understanding of any unavoidable costs involved in the transportation of your employees’ personal and household goods and are committed to keeping any impacted customers and clients updated as things develop.
Please reach out to your Weichert contact if you have any questions.
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