Adisseo's Strategic Response to the Red Sea Crisis

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.

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