As we closely monitor the evolving situation in the Red Sea, it’s important to recognize its significant commercial implications, particularly for our industry.
A primary concern for shipowners operating in the region are the escalating operational costs. Rerouting to avoid the Red Sea inevitably leads to longer transit times, increasing fuel consumption and operational expenses. This not only impacts the bottom line but also disrupts the carefully timed schedules crucial in modern logistics.
Compounding this challenge are the soaring insurance premiums. As insurers react to the heightened risk in the region, the cost of insuring vessels on these vital routes has risen sharply. This increase in operating costs could potentially be passed down the supply chain, affecting a wide range of industries and consumers.
Delayed deliveries are another critical concern. The efficiency of global trade relies on the predictability of shipping routes. With vessels avoiding the Red Sea, we’re seeing a ripple effect through the supply chain, leading to delays in the delivery of goods. This disruption can have far-reaching consequences, from manufacturing delays to impacting inventory levels in various sectors.
Above all, the safety of our people and assets remains our top priority. The uncertainty in the region raises serious concerns about the safety of our crews and vessels. Ensuring their protection is paramount, and we are committed to taking all necessary precautions to safeguard them.
We must adapt our strategies to mitigate these impacts, ensuring the continuity of our operations while prioritizing the safety of our crews and assets.
Emirates Shipping Association
Or for further information refer to
MC(23)132 – RED SEA SECURITY UPDATE 27 DECEMBER 2023
MC(23)132 – Annex A – 20231223-CMF Advice to Mariners 01_23
MC(23)132 – Annex B – Risk Intelligence – Security Threat Update Red Sea 21 Dec 2023
We are eager to provide you with more information. Please don’t hesitate to reach out.