As many of you will be aware, some large shipping lines have recently paused transit of the SUEZ due to a number of attacks on vessels. Those attacks appear to be related to the Israel/Gaza war, and particularly where a vessel has called Israel or intends to – however there have also been unconnected attacks making the situation very complex to understand.
Some of these vessels are now waiting at anchor and some are deviating by the Cape of Good Hope, Africa. The situation is fast developing, and we are certain a joint/global solution for the protection of this key shipping route will be found in the very near future. We will treat each Suez transiting vessel that we book cargo on a case-by-case basis.
At this stage, the main effect has been upon container line services (including the likes of Maersk, MSC, and Hapag Lloyd), though some bulk, tanker and MPP vessels are also considering/implementing pauses, or diversions around the Cape of Good Hope as well. At the moment, the main effect has been an increase in transit times (in the region of 10-15 days). However, if a solution is not found quickly, it is widely reported that freight costs will increase, at least in the short term, whilst a solution is put in place.
We have also been advised that some cargo insurers are increasing their premiums for Suez transiting cargoes. At this stage there is no effect on our market leading open cover cargo policy that we have negotiated through our brokers Orbis Risk Partners.
If Peters & May is acting as your agent, forwarder or NVOCC on shipments due to transit through the SUEZ, please feel free to get in contact with us to discuss any concerns you may have. Please rest assured that we will always have your best interests in mind.
