Early in the morning of the 3rd, as the risk index for passage through the Strait of Hormuz rose to a higher level, more than 15 major shipping companies have issued emergency notices. The booking systems for some routes have already shown gray and unselectable. Freight forwarders, your containers may be in the most dangerous situation since the Suez Canal blockage in 2021.
In-depth Analysis of "Five Types of High-risk Cargo"
Dangerous goods (DGCargo) - the top priority for refusal of carriage
Due to the enhanced security level of the maritime areas in the Middle East, shipping companies have begun to thoroughly clean the batteries and chemical containers to be shipped. They strictly prohibit any underreporting! Currently, several ports have initiated scanning and random inspections. If the violations are confirmed, the penalties will be the latest "wartime violation fines" of 26 years.
Refrigerator (Reefer) - The Test of Extended 18-Day Journey
Taking a detour around the Cape of Good Hope has extended the voyage from 30 days to nearly 50 days. Fresh produce and frozen meat sent from Southeast Asia to Europe are facing shortages of power sockets and excessive fuel consumption of refrigeration equipment. Assessing the value of the goods, it is recommended that perishable goods with long voyages be immediately transported by air instead.
Precision electronics and automotive components - Breakpoints in the supply chain
High-value products are most vulnerable to being lost at sea. Currently, due to the sharp increase in insurance premiums, some shippers have begun to cancel orders. Shifting from sea transportation to land transportation will become the main trend in March. The capacity of the China-Europe Railway Express is expected to be sold out within the next 72 hours.
Yiwu / Small Commodity Market - Cost Considerations for Low-Profit Products
The additional charges (ECS + WRS) may already exceed the value of the goods. Freight forwarders should be vigilant to prevent customers from choosing to abandon the goods at the destination port due to the higher freight cost than the value of the goods.
Energy-related equipment - Affected by political reviews
The infrastructure materials being sent to specific regions are currently undergoing strict compliance reviews.
Airline's latest surcharge list
Maersk's Emergency Freight Increase (EFI) applies to goods that are already in transit (afloat) but have not yet been unloaded.
Applicable to all ports in the Persian Gulf, Arabian Gulf and adjacent areas (including Damman, Jubail, Bahrain, Kuwait, etc.)
Hapag-Lloyd's War Risk Surcharge (WRS) covers not only new bookings but also goods that are already in transit but have not yet been unloaded:
Applicable to all ports in the Persian Gulf, Arabian Gulf and adjacent areas (including Damman, Jubail, Bahrain, Kuwait, etc.)
The emergency conflict surcharge (ECS) issued by CMACGM (CMA CGM) covers almost the entire Red Sea and the surrounding areas of the Gulf:
The route covers Iraq, the United Arab Emirates, Saudi Arabia, Jordan, and even includes the Ain Suhayna port in Egypt as well as the East African gateway countries such as Sudan and Djibouti.
MSC (Mediterranean Shipping Company) is currently in a state of complete booking suspension. There is no unified price at present; instead, it mainly operates on a per-ticket confirmation (Spot) basis.
ONE (Ocean Networking) has announced the suspension of accepting all new orders for voyages to and from the Gulf region of the Middle East. Currently, the safety of the cargo on board is being assessed on a voyage-by-voyage basis.
COSCO (China COSCO Shipping) has informed the consignors that the additional costs incurred due to the diversion will be borne by the consignors in accordance with the terms of the bill of lading.
Solution plan
Don't trust low prices: 99% of the freight forwarders offering low prices will fail to secure shipping space. They may even encounter "unloading of containers" midway.
Don't wait: The current situation is that the price is set hourly, and there is priority booking for actual cabins.
Don't stick to a single route: Eggs should be kept separately, and combined transportation by land, sea and air has been the standard practice for 26 years.
Please note to all shippers and freight forwarders: Keep track of the price trends of each shipping route. Before shipping, please check the latest shipping schedules and price information and make a detailed shipping plan in advance.