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Comment from Logistics UK regarding the current situation in the Red Sea


In response to the current situation in the Red Sea, Logistics UK’s Head of Trade Nichola Mallon said: “Seafarers, vessels and the cargoes on them, as civilian trade, have the right under international law to move safely. These indiscriminate attacks from shore-based installations in Yemen are of serious concern from a safety and international trade perspective.

“The withdrawal of north-bound services from the Red Sea/Suez Canal route will mean their diversion via the Cape of Good Hope adding about 10 days to transit times and estimated arrival dates in North Europe and Mediterranean ports.  

“With this diversion and delay comes additional costs. Any prolonged closure will add to the cost of goods, already under pressure from the effects of wider inflation, especially if flows of oil and natural gas are affected. 

“This serious situation predominantly affects ships serving the Asia to North Europe and Mediterranean routes. However, there could be knock-on effects in other regions if the situation escalates or lasts for a prolonged period.  

“This interruption to global shipping also comes at a time when there are already significant challenges to movement through the Panama Canal because of drought.   

“Logistics UK welcomes that a number of national governments are working to secure the safe passage of essential trade in international waters and protect the safety of crew, the free passage of ships and the continued functioning of this key international trade route. 

“Meanwhile, logistics is a flexible and adaptable industry, which is already working to identify alternative routes to deliver goods to and from the UK.” 

Published On: 21/12/2023 14:30:00

 

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