Suez Canal Update - Impact on Freight

Taken from a newsletter from the Woodland Group:

"Following Wednesday’s advisory on the Ever Given vessel which ran aground in the Suez Canal at around 8am local time on March 23, please find below an update on how your shipments may be impacted.
 
The operation to release the stricken vessel may take between a few days to a couple of weeks pending success of the efforts of the authorities of the Suez Canal and a team of specialist recovery experts to re-float the Ever Given.
 
CURRENT SITUATION
 
Several hundred vessels are currently queuing in the canal and a number of carriers have now announced which of their vessels are waiting to pass. We’re working with them on sharing the latest list of all vessels affected, so you can track your shipments. In the meantime, to follow Evergreen's Ever Given in real time and view the vessels queuing, please click here.
 
While hundreds of vessels will be delayed having to wait for passage, others have decided to take the detour route via the Cape of Good Hope, adding a 10-14 days to the transit time in the process.
 
IMPACT
 
The impact on both westbound & eastbound business is as follows:
 
  • Delayed arrivals to North European base ports including UK & Ireland of anything up to 2 weeks
  • Serious congestion at North European base ports including UK & Ireland with vessels arriving at the same time causing berthing issues
  • Serious congestion at all China ports disrupting eastbound and westbound service
  • Carrier vessel rotations may change, and certain origin and destination port calls omitted
  • Re-routing via the Cape – adding 2 weeks to transit times
  • Re-emergence of equipment problems in Asia with significant shortages of empty containers expected
  • Additional blank sailings can be expected as a result
WHAT EFFECT TO EXPECT?
 
Extended transit times, further blank sailings and the inevitable issues surrounding port congestion as well as a severe lack of empty containers will likely result in increased freight rates through congestion surcharges, PSS and any other emergency surcharges carriers may impose."

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