Since the November attack by Yemen’s Houthi rebels, hundreds of vessels from all major shipping lines have changed their routes to avoid the area.
The Suez Canal, one of the world’s busiest maritime routes, has seen an unprecedented drop in traffic as a result. An analysis of data from May 2024 found that shipping volumes through the Suez Canal were down a staggering 80% compared to May 2023. The report notes that this trend is unlikely to be reversed soon, and the upcoming peak shipping season is unlikely to prompt carriers to return to using the route.
As a result, carriers are taking alternative routes around Africa or through the Panama Canal, which significantly increases transit times. Median container transit times on the China to Europe, Southeast Asia to Europe, and Southeast Asia to the U.S. East Coast routes have increased by 10-14 days. Project44 said these transit times represent the “new normal” as carriers continue to avoid the Red Sea.
The fallout from the conflict has spread to the U.S. and Europe, increasing overall shipping times by nearly two weeks. Despite the initial schedule changes following the attack, carriers have now adapted to the new routes, with delays reduced to 4-8 days from the initial high.
Project44 advises shippers to plan with these extra transit days in mind to ensure that goods arrive in time for the high-demand retail season.
The recent escalation of conflict in the Red Sea has had a significant impact on international routes, resulting in a significant increase in transit times for the container shipping industry, according to a detailed report released by Project44, a leading authority in supply chain visibility.
Hundreds of ships from all major shipping companies have rerouted to avoid the area since the Houthi attack in Yemen in November. This change has had a huge impact on the Suez Canal's traffic, which has experienced a significant decline in traffic, with data from May 2024 showing a dramatic 80% drop compared to the same period last year.
The report further pointed out that this trend is unlikely to be reversed in the short term, and even the upcoming peak shipping season will hardly prompt carriers to resume using this route. As a result, carriers have chosen alternative routes around Africa or through the Panama Canal, which inevitably leads to a significant increase in transit time.
Specifically, the average container transit time has been extended by 10 to 14 days on routes from China to Europe, Southeast Asia to Europe, and Southeast Asia to the East Coast of the United States. Project44 emphasized that this extended transit time has become the current "new normal" as carriers continue to avoid the Red Sea region.