EXPORTERS are turning to alternative air, land and sea routes to get products to market as ships suffer missile attacks in the Red Sea, making the Suez Canal untenable, Reuters reports.
Iran-backed Yemeni Houthi forces have stepped up attacks on vessels in the Red Sea to show support for Hamas in response to Israel's attacks on the Gaza.
The attacks have disrupted a key trade route linking Europe and North America with Asia via the Suez Canal. Container shipping costs have surged, more than tripling in some cases, as companies seek to move goods via other, often longer, ocean routes.
If there are extended disruptions, the consumer goods sector that supplies the world's top retailers like Walmart and IKEA will face the biggest impact, S&P Global said in a report.
Alan Baer, CEO of OL USA, has teams advising shipping and logistics clients to prepare for at least 90 days of Red Sea disruptions.
'It doesn't help that it's Christmas weekend,' said Mr Baer. 'We'll have a quiet period from now until January 2, and then everybody will be frenetic.'
Some fast-acting companies already are trying to switch to so-called intermodal transport, which can involve two or more modes of transportation, said Jan Kleine-Lasthues, chief operating officer of airfreight with leading German freight forwarder Hellmann Worldwide Logistics.
Hellmann has seen increased demand for combined air and sea routing for consumer goods like apparel, electronics, and tech items, he said. For example, that could mean goods being transported first by sea to a port in Dubai, where they are then loaded onto planes.
'This alternative route allows customers to avoid the danger zone in the Red Sea and the long voyage around the southern tip of Africa,' Kleine-Lasthues told Reuters.
SeaNews Turkey
Iran-backed Yemeni Houthi forces have stepped up attacks on vessels in the Red Sea to show support for Hamas in response to Israel's attacks on the Gaza.
The attacks have disrupted a key trade route linking Europe and North America with Asia via the Suez Canal. Container shipping costs have surged, more than tripling in some cases, as companies seek to move goods via other, often longer, ocean routes.
If there are extended disruptions, the consumer goods sector that supplies the world's top retailers like Walmart and IKEA will face the biggest impact, S&P Global said in a report.
Alan Baer, CEO of OL USA, has teams advising shipping and logistics clients to prepare for at least 90 days of Red Sea disruptions.
'It doesn't help that it's Christmas weekend,' said Mr Baer. 'We'll have a quiet period from now until January 2, and then everybody will be frenetic.'
Some fast-acting companies already are trying to switch to so-called intermodal transport, which can involve two or more modes of transportation, said Jan Kleine-Lasthues, chief operating officer of airfreight with leading German freight forwarder Hellmann Worldwide Logistics.
Hellmann has seen increased demand for combined air and sea routing for consumer goods like apparel, electronics, and tech items, he said. For example, that could mean goods being transported first by sea to a port in Dubai, where they are then loaded onto planes.
'This alternative route allows customers to avoid the danger zone in the Red Sea and the long voyage around the southern tip of Africa,' Kleine-Lasthues told Reuters.
SeaNews Turkey