The ongoing Red Sea conflict prompts a seismic shift in global shipping routes, significantly impacting the industry. Shipping behemoth Bolloré Logistics highlights the far-reaching consequences, manifesting in heightened airfreight demand.
The conflict’s volatility has led to elevated airfreight rates, protracted transit times, and substantial disruptions in the supply chain. Notably, Houthi Militia attacks have triggered a wave of vessel diversions away from the Suez Canal, prompting sea shipment challenges.
Bolloré Logistics anticipates a strain on airfreight capacity due to prolonged ocean transit times, envisaging substantial price increases on pivotal trade routes. The company projects an increased airfreight capacity, particularly between mid-January and early February, originating from China.
Despite international endeavours through Operation Prosperity Guardian, challenges persist in securing commercial shipping in the Red Sea. Major carriers, including Maersk and CMA CGM Group, recalibrate routes, underscoring the industry’s cautious adaptation to the ongoing conflict’s repercussions.