SKANDA FREIGHT SERVICES (BPLO Operations)’s Post

📍 *Update on the situation in the Red Sea* 📍 In response to the recent attacks on ships in the Red Sea, the United States has launched a new international force called **Operation Prosperity Guardian**. The initiative aims to ensure that the Red Sea and the Gulf of Aden remain safe for commercial shipping despite the increased Houthi rebel attacks ¹. Here are the key points of the latest updates: ▪️The US is leading the international coalition, which includes the navies of Bahrain, Canada, France, Germany, Italy, Japan, South Korea, the Netherlands, and the United Kingdom . ▪️The coalition's primary objective is to counter Houthi threats and protect international maritime trade in the Red Sea, Bab al-Mandeb, and Gulf of Aden . ▪️The announcement comes after two ships were struck by Yemen's Houthi militants near the Bab el-Mandeb Strait . *The Strategic Importance of the Red sea and Consequence of the Global Supply Chains* *The Red Sea,* one of the world's most critical routes for oil, Fuel and Other Commodities, is witnessing major disruptions in shipping activities due to safety concerns. Major shipping lines, including **Maersk**, have suspended operations on the Red Sea route . This will disrupt the current sailing schedules and further impact global trade. Avoiding the strait routes will require vessels to take longer routes, such as navigating around southern Africa, which could significantly exacerbate operating costs. Nearly **17,000 vessels** and **10% of global trade** pass through the strait every year, making it a critical lane for maritime and commerce . The disruptions in shipping activities could significantly impact the broader logistics and supply chain sectors .

Increasing threats to global trade posed by mounting attacks on ships in the Red Sea, primarily orchestrated by Yemen’s Houthi rebels amid the Israel-Hamas conflict. Major shipping companies, including Maersk and Hapag-Lloyd, have temporarily suspended operations in the critical trade route, prompting concerns about potential disruptions to the flow of goods. While Canada doesn't have direct cargo vessels in the Red Sea, the nation's shipping industry maintains close relationships with the affected companies. The article highlights the historical significance of the Red Sea, its vital role in global trade, and potential repercussions on trade patterns, drawing parallels to past disruptions such as the Suez Canal blockage. The immediate impact includes a surge in insurance costs for commercial shippers in the region. More information here: https://lnkd.in/dr67aaD7

Navigating Troubled Waters: The Red Sea Shipping Crisis ❗📢 🚢   The global shipping industry is continuing to grapple with the Red Sea Shipping Crisis. This critical waterway, a key artery for international trade, has become a focal point of concern due to a confluence of factors that have disrupted maritime operations and sent shockwaves through the global supply chain. Tensions between regional powers continue to escalate, leading to increased militarization and heightened security concerns in the Red Sea. Infographic of every container vessel location shows vessels are rerouting around Africa rather than through the Red Sea. The economic fallout from the crisis is significant, affecting not only the shipping industry but also the broader global economy. Increased transportation costs, supply chain disruptions, and uncertainty have impacted business operations and investor confidence. #redseacrisis #globaltrade #shippingworldwide #airlandlogistics #freightforwarder

12% of global trade runs through the Red Sea With that said, 30% of total container traffic runs through it as well. It acts as a short cut between Asia and Europe. Without it, cargo ships are forced to travel along the coast of Africa using the Atlantic Ocean. This is a substantially longer route which adds significant costs if cargo ships are forced to detour due to instability. #logistics #cargo #containers #trade #globaltrade

40% of Asia-Europe trade goes through the Suez Canal. Approx 12% of global trade passes through the Suez Canal, representing 30% of all global container traffic, and over USD $1 trillion worth of goods per annum.  Ships will have to go around the bottom of Africa instead, adding a week to 10 days or even longer. So adding another 33% to monthly expenses, just got get from point A to B. Of course that additional financial burden will be enjoyed by everyone along the supply chain, especially the end consumer. Prediction: Messing with oil giant's and other corporate bottom-lines will increase pressure on global political levers that are connected to the "champing at the bit" military gears of woe. Friendly neighborhood Saudis and Egyptians are not happy either. Things in Yemen will get much spicier, aside from the usual ongoing special operations shenanigans. I would not be surprised if private military contractors start vacationing on the southern and western coasts of Yemen. I'm sure the books and movies in the coming years, based on the near future events will be riveting.

The EU's trade commissioner, Valdis Dombrovskis, warns of economic risks due to trade disruptions in the Red Sea, impacting shipping routes and the Suez Canal. Recent missile attacks by Yemen Houthi rebels on vessels heighten concerns, leading major shipping firms to avoid the region. With 15% of global shipping passing through the Red Sea, disruptions could increase energy costs and inflation in Europe, affecting supply chains. Tesla, Volvo, Suzuki, and Shell suspend operations due to supply chain issues, while QatarEnergy temporarily pauses LNG shipments through the Red Sea. The situation poses a broader threat to Europe's economy and energy supply. #RedSeaCrisis #TradeDisruptions #EUAlert #SuezCanalRisk #EnergySecurity #GlobalShipping #HouthiAttacks #SupplyChainImpact #EuropeanEconomy #GeopoliticalTensions #TradeSecurity #ShippingSafety #EconomicOutlook #WorldTradeConcerns #MiddleEastCrisis #MaritimeSecurity #EUTradeCommission #EnergyPrices #GlobalSupplyChain #GeopoliticsInFocus

More challenges in front of Europe! #RedSeaCrisis #TradeDisruptions #EUAlert #SuezCanalRisk #EnergySecurity #GlobalShipping #HouthiAttacks #SupplyChainImpact #EuropeanEconomy #GeopoliticalTensions #TradeSecurity #ShippingSafety #EconomicOutlook #WorldTradeConcerns #MiddleEastCrisis #MaritimeSecurity #EUTradeCommission #EnergyPrices #GlobalSupplyChain #GeopoliticsInFocus

The EU's trade commissioner, Valdis Dombrovskis, warns of economic risks due to trade disruptions in the Red Sea, impacting shipping routes and the Suez Canal. Recent missile attacks by Yemen Houthi rebels on vessels heighten concerns, leading major shipping firms to avoid the region. With 15% of global shipping passing through the Red Sea, disruptions could increase energy costs and inflation in Europe, affecting supply chains. Tesla, Volvo, Suzuki, and Shell suspend operations due to supply chain issues, while QatarEnergy temporarily pauses LNG shipments through the Red Sea. The situation poses a broader threat to Europe's economy and energy supply. #RedSeaCrisis #TradeDisruptions #EUAlert #SuezCanalRisk #EnergySecurity #GlobalShipping #HouthiAttacks #SupplyChainImpact #EuropeanEconomy #GeopoliticalTensions #TradeSecurity #ShippingSafety #EconomicOutlook #WorldTradeConcerns #MiddleEastCrisis #MaritimeSecurity #EUTradeCommission #EnergyPrices #GlobalSupplyChain #GeopoliticsInFocus

Tensions Rise in Middle East: Impact on Global Trade and Shipping 🚢🌍 Amid escalating tensions in the Middle East, Iran's capture of the MSC Aries, a container ship linked to Israel, has stirred concerns in the maritime industry. The event, preceding April 13th's missile attacks, underscores deepening conflict, raising alarms about trade route security and the stability of hubs like Jebel Ali.   Iran's recent actions, including a coordinated attack against Israel and the seizure of another vessel near the Strait of Hormuz, further heighten anxieties about vital trade routes. As stakeholders monitor developments, uncertainty looms over global trade and shipping markets.   Christian Roeloffs, from Container xChange, warns of increased volatility and rising freight rates due to heightened tensions. The significance of the Strait of Hormuz amplifies the potential impact on regional trade and shipping operations.   The evolving situation underscores the complex geopolitical dynamics and the fragility of regional stability, with potential global economic repercussions. With concerns about broader regional and global implications, the Strait of Hormuz's vital role in global energy security becomes paramount, highlighting the immediate consequences of any disruptions in the region.  www.feedstuffs.com For Customs and Supply Chain Services contact: e: info@customscomplete.com t: +353 91 429 737 / +44 20 3830 7780 / +33 259 600 398 #globaltrade #shipping #geopolitics #customs #import #export 

#red #sea #crisis #impact on #italy and #mediterranean #hubs 😩🇮🇹⚓ The Suez Canal represents the world's main trade route between major Asian producing countries and the European continent. Focusing on Italy we find that as much as 40 percent of our Import-Export passes through the Suez Canal (while it is 12 percent of global maritime traffic) and the main Italian ports are at risk of losing ground due to the blockade in favor of the Northern European ports of Rotterdam and Hamburg, which are 'favored' by the circumnavigation route of the African continent