There is no end in sight with the Red Sea crisis. In its latest Europe market update, Maersk says the situation remains highly volatile.
Maersk’s CEO Vincert Clerc warned that the months ahead are going to be tough for both carriers and businesses.
Supply chains have been rocked by the Red Sea crisis’ effects and shippers and customers alike have had to weather the storm.
Why is the Red Sea so important?
The Red Sea is a crucial corridor connecting the Mediterranean Sea, the Indian Ocean, and beyond. Its strategic location gives shippers access to Europe, Asia, and Africa. The Red Sea route is the natural sailing route between these regions.
Ocean freight update
The logistics giant says the start of the summer holidays in north Europe has meant many of the hubs and terminals are faced with the traditional reduced labor availability seen in summer months.
- Increased waiting times at MEPT Terminal in Belgium: This is especially the situation for AE6 and AE7 services.
- Contingency plans: Team Maersk is exploring contingency measures such as potential omissions and rotation swaps to mitigate the impact on scheduled and its customers’ supply chains.
How are the terminals in the West Mediterranean region performing amid current logistical challenges?
“In the West Mediterranean, terminals in Tangier are working well and showing stable performance. In Algeciras, we are seeing high yard density levels and container dwell times due to network delays combined with long layovers, creating a disbalance in yard density.”
Maersk teams across the continent are collaborating closely to assess the situation and ensure ships follow the planned schedule.
Barcelona logistics situation
The Port of Barcelona is still dealing with congestion and longer wait times, along with high yard usage and restrictions on unloading empty containers from feeders.
Airfreight update
Maersk emphasizes the continued situation in the Red Sea is highlighting the need for reliable air freight services, as well as solutions such as Sea-Air via hubs like Dubai, Muscat, and Singapore. “As such, air freight is being considered less of a ‘plan B’ solution, but rather a fundamental part of supply chain success.”
Benefits of shipping air freight
- Speed: Companies may need stock urgently and choose air freight as it’s a much faster option than ocean freight. The Red Sea crisis may force manufacturers and store owners to look to air freight to prevent a serious shortage in their production line or store shelves.
- Reliability: Airlines run strict schedules. These schedules make it a reliable option for air freight cargo. Fresh produce is often flown via airfreight so items arrive fresh at a destination.
- Efficiency: Shipping by air freight is a great time saver. A manufacturer may need an urgent part to complete a project. Placing the item as air cargo will allow the manufacturer to save time instead of waiting a few weeks for ocean freight to arrive in port.
Photo Credit: Maersk
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
