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Suez Canal Disruptions

Updated: Mar 7

Preventive Measures for Navigation in the Red Sea

Tuesday December 19th, 2023

As you may be aware, about 15% of world shipping traffic transits via the Suez Canal, the shortest shipping route between North America/Europe and Asia. The attacks by Yemen's Iran-aligned Houthi militants on ships in the Red Sea are disrupting maritime trade.

Shipping Lines are rerouting their ships around the Cape of Good Hope to avoid the Suez Canal. MSC and Hapag Lloyd, which have seen their ships directly targeted, said last week they would avoid using the shipping channel altogether. Meanwhile, CMA CGM and Maersk Line instructed their vessels to pause transit until further notice. All major carriers have begun to sail around Africa instead, adding costs and delays which are expected to be compounded over coming weeks.

According to industry analysts, the shipping diversions could result in significantly slower transit times and potentially higher prices for consumers. Should you have any questions, please contact us.

DCS Canada Team

Aerial image of Suez Canal

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