News & Blog

September 2024 Update:

A September 2024 shipping update for shipments to the Middle East (Saudi Arabia & UAE) from North America, Europe, and Asia

North America to the Middle East: Transits from North America remain stable despite persistent challenges. However, carriers are adjusting pricing due to fuel surcharges and tight capacity around the Cape of Good Hope. We expect slight delays, particularly for non-priority cargo.

Europe to Middle East: European shipments are experiencing delays due to recent adverse weather at the Cape of Good Hope and congestion at European ports. Vessel availability is limited, impacting shipment timelines by 3-5 days.

Asia to Middle East: Asian routes have been relatively stable, but congestion at ports like Singapore and increased demand for containers are stretching lead times. Delays of 2-3 days are expected for standard cargo.

We recommend revising lead times for ongoing projects and closely monitoring updates with your Account / Project Manager.

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July 2024 Update:

Extreme weather at the Cape of Good Hope has significantly disrupted vessel movements and port activities, resulting in delays of approximately an additional three days on either side of South Africa. High winds and rough seas are forcing some container ships to reroute or seek shelter, which may cause additional delays. We are closely monitoring the situation and will provide updates as necessary.

For specific shipment details, we are collaborating with our trade partners to minimize the impact of these delays through ongoing dialogue with all stakeholders involved.

We greatly appreciate your patience and understanding during these challenging times.

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March 2024:

The escalation of geopolitical tensions and conflicts in the Red Sea region has raised significant apprehensions regarding the use of the Red Sea for freight. In response, we are opting to maintain our reliance on the Cape of Good Hope (South Africa) route instead of the Suez Canal.  

The disruptions in the Red Sea are causing significant setbacks for global trade and project completion to name a few. As a result, our product shipments from the West are experiencing delays of approximately forty days currently. We are working closely with our trade partners to minimize the impact of these delays through an open dialogue with all stakeholders involved.

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February 2024:

Recent attacks on ships in the Red Sea have caused a considerable amount of challenges for global shipping and trade routes across the world. Major shipping lines like Hapag-Lloyd, CMA-CGM, Maersk, and MSC are avoiding the Red Sea completely, opting for longer routes around the Cape of Good Hope instead of the Suez Canal. This has caused many direct and indirect consequences to the delivery of projects in the region.

Impact on Cost:

This change of shipping routes not only causes delays on projects but also shifts the cost of delivering a project. Longer routes equate to less access to ships and containers, creating a higher demand and lower supply. The result of which is seeing prices of freight rise dramatically. Higher costs are reducing the validity of open quotes/proposals from 90 days to 30 days or less, putting added pressure on customer decision making in a buoyant market.

Operational Challenges:

Longer routes equate to reduced frequency of ships moving cargo in the same period of time, which has also reduced the number of empty containers being made available for the return journey. While the products may be ready at the factory, acquiring a container for freight is as much of a challenge as booking the ship to carry the goods. We have a very experienced team and freight partners working round the clock to reduce this impact, however we are seeing a repeat of 2021-2022 conditions playing out at present.

Production Delays:

With end products taking 4-5 weeks additional to reach their destination, raw materials suffer the same fate. If the Red Sea conditions persist through Q1, we will see production delays from our brand partners due to the lack of raw material availability, which will only compound the issue. Understanding the knock on effect is key to better project planning and arriving at more realistic dates for project deadlines.

The Red Sea disruptions are a big challenge for global trade, but by staying informed and working together, we can minimize the impact experienced across all stakeholders on the project.

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