International shipping update: Baltimore Bridge blown up, Red Sea issues remain

The aim is to clear the way for the eventual full return of shipping through one of the busiest sea routes in the USA.

The Dali remains stranded at the site of the accident, blocking the deep waterway into Baltimore port and is now covered in scrap metal from the bridge.

It is estimated that 3,000-4,000 tonnes of metal and masonry were dislodged by the explosions, which will need to be cleared from the waterway and onboard the stricken vessel before further progress can be made.

21 crew members, most of them Indian, are still on board, maintaining the vessel and protecting its cargo, and sheltered while the controlled explosions took place. The six-week closure of Maryland’s Patapsco River as a result of the collision has forced the rerouting of many of the US’s supply chains.

Meanwhile, ships continue to be rerouted around the tip of Southern Africa, rather than travelling through the Red Sea, in response to more than 100 attacks on vessels by Houthi rebels. Traffic through the Suez Canal dropped by 66% in April compared with a year ago.

Yet despite the pressure on trade routes, the Office for National Statistics’ UK trade report, out last week, said there had been no evidence the crisis had affected UK import levels between January and March, with shippers rerouting goods through other channels to maintain supplies.

About 70% of all Europe’s car parts are shipped through the Red Sea from Asia, with some manufacturers turning to air freight to bypass the region, while the number of trains leaving China for Europe has increased dramatically since the start of the year.

With some manufacturers realigning their supply chains to source products from countries closer to home, such as Morocco and Turkey rather than Asia, there has been no significant rise in consumer prices as yet.

Logistics UK continues to maintain a watching brief on the situation and will keep members informed of any changes.

Published On: 23/05/2024 15:00:00

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