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REAL-TIME VISIBILITY

Adisseo's Strategic Response to the Red Sea Crisis

Date Jan 31th, 2024

Time 7 min read

In December 2023, the Red Sea witnessed a transformative event as Houthi attacks and hijackings on commercial vessels triggered a profound shift in global shipping routes, compelling vessels to reroute from the Suez Canal to the Cape of Good Hope. The impact was swift and significant.

According to Wakeo’s analytics, there has been a 75% decrease in traffic around the Red Sea since the third week of December.

Weekly counts of container vessels in the Red Sea

Blogpost - Ningbo to Rotterdam via Suez Canal vs Cape of Good Hope

Extended transit times

Extended transit times became the new norm, adding an average of 10-14 days to shipping schedules. For instance, consider the journey from Ningbo to Rotterdam: the rerouted voyage around the Cape of Good Hope extends the nautical miles from 10,359 to 13,670.

This deviation alone results in an estimated 9 days of additional time at sea. However, this was just the tip of the iceberg.

Blogpost - Port Omission - Ningbo to Piraeus

Ports along the Mediterranean, including Valencia and Barcelona, face omission due to the altered route. This deviation contributes to a potential stretch in the original 21-day voyage from Ningbo to Piraeus, now extending to 50-60 days under the rerouted scenario.

The disrupted supply chain is further challenged by extended transit times, compounded by port omissions and vessels navigating the Suez Canal in an irregular manner.

Shippers found themselves navigating uncharted waters, prompting a critical need for a solution that could provide real-time visibility and reliable data. The need for strategic and data-driven decision-making in the face of such disruptions became paramount.

One compelling use case comes from Adisseo - an animal nutrition group specialized in nutritional solutions and additives for animal food, where Florence Le Gal, the Supply Chain Project Manager, shared insights into the impact and measures taken:

Immediate Response to the Disruption

On December 15th, following the attack, Adisseo leveraged the Wakeo platform to cross-check impacted containers on the affected vessel. The platform provided detailed and accurate information at a glance, a significant improvement over the “time response and identification”.

"In moments of crisis like the Red Sea disruption, the Wakeo platform played a pivotal role for us. It allowed us to quickly identify all impacted containers, initiate the insurance claim process and proactively communicate with warehouses and customers about potential delays," said Florence Le Gal, Supply Chain Project Manager at Adisseo.

This quick response enables Adisseo to proactively manage customer communication.

Adapting to Altered Routes and Lead Times

As major shipping lines such as MSC, Hapag-Lloyd, Maersk, or Evergreen. modified their routes, Adisseo took strategic measures to adapt. A thorough review of lead times led to the incorporation of an average of 15 days into their planning.

"The real-time visibility provided by Wakeo was instrumental in adapting to modified shipping routes, helping us anticipate delays, communicate updated ETAs to customers, and efficiently manage our supply chain during these challenging times," emphasized Florence Le Gal.

Flexibility and Supply Chain Reengineering

Recognizing the importance of flexibility, Adisseo undertook supply chain reengineering. This involved agility in the redirected flow mapping, a proactive strategy to mitigate delays caused by modified shipping routes.

As the Red Sea crisis continues to unfold, the experience of Adisseo highlights the crucial role played by real-time visibility solutions in steering through the complexities of disrupted supply chains. The ability to make informed decisions promptly, communicate effectively, and adapt strategies on the fly is proving to be indispensable for shippers worldwide.

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