International shipping company Maersk Line suspends sailings of Red Sea voyages.
Maersk Line suspends sailings of Red Sea voyages
On December 30th, Maersk’s vessel “MAERSK HANGZHOU” was attacked while passing through the Strait of Bab al-Mandeb from Singapore to the Egyptian port of Suez. Then Maersk announced on the 31st to suspend the 48-hour Red Sea voyage.
Previously, the U.S.-led escort alliance completed the deployment of global shipping giant Maersk (Maersk) and the third-ranked French Duffy (CMA CGM) has announced a return to the Red Sea Route, other shipping giants and logistics companies whether to follow up on the concern.
Maersk Line Suspends Sailings
Maersk said on December 22, “the Red Sea shipping chaos is afraid to continue for several months,” Asia and Europe, the U.S. East and the Middle East, a total of 15 container routes affected.
More than one hundred and fifty tankers have modified the arrival date, and even some of them have been extended to March 2024, the market assessed that the Red Sea crisis has a short-term impact of 20% of the global capacity, and the freight rate should be soaring.
How do you know that the plan is not as fast as change, December 25 Maersk changed its statement: “December 24 received confirmation of notification of the previously announced multinational security initiative ‘Operation Prosperity Guardian (OPG)’ has now been established and completed the deployment of the maritime trade merchant ships to pass through the Red Sea and Gulf of Aden, the shipping industry can once again navigate the Suez Canal, which serves as a gateway between Asia and Europe.”
Impact of the Maersk Line Suspends Sailings: higher transportation costs
Reasons affecting transportation costs
Different countries and regions have different laws, regulations and policies, including tariffs, customs clearance requirements, import restrictions, etc. Understanding and following these laws and regulations is especially important for cross-border logistics, but they are also very complex and can easily lead to misunderstandings and mistakes.
Customs clearance of goods
Customs clearance and clearance is an important part of cross-border logistics. Improper documentation and procedures for customs clearance can result in goods being held up or detained, delaying delivery and increasing costs.
Maersk Line Suspends Sailings
Cargo Security
In cross-border logistics, cargo will be at risk of theft, damage or loss. Additional measures, such as logistics insurance and security seals, are required to ensure cargo security.
Shipping time and traceability
Cross-border logistics often require longer transportation times, which may affect the efficiency of the supply chain. At the same time, tracking the location and status of goods can be difficult, which poses a challenge to user experience and supply chain visibility.
Currency fluctuations
Changes in currency exchange rates can have a significant impact on cross-border logistics costs. If the currency depreciates, the buyer may have to pay more in the local currency for the same goods.
Supply Chain Complexity
Cross-border logistics generally involves multiple players such as manufacturers, suppliers, logistics companies and customs authorities. Managing cooperation and collaboration among these players can be complex.
To address cross-border logistics, companies need to build strong supply chain management systems that utilize technology and data to improve visibility and operational efficiency. At the same time, building good relationships with international partners and understanding the culture and regulations of the target market are also key to success.
Maersk Line Suspends Sailings
As technology and the global logistics industry evolve, the constant search for opportunities to innovate and optimize can also help address these challenge.
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