Consumer goods will face ‘largest impact’ from delays, higher costs as vessels avoid Red Sea

SHIPPING and logistics companies are warning of delays and higher charges for Asia-Europe freight, as major shipping lines reroute from the Suez Canal to avoid Yemeni rebel attacks in the Red Sea.

At least one logistics player has advised its clients in all regions that vessels using South Africa’s Cape of Good Hope as an alternative route will add about 14 days or 30 per cent more time to voyage. It has also advised them to ensure they have enough stocks to tide them over.

C H Robinson said in its advisory to clients: “Be advised this shift could put a strain on capacity globally, and will lead to carriers imposing rate increases and war risk surcharge.”