Red Sea Crisis_FreightAmigo

【Logistics News】 How the Ongoing Red Sea Crisis is Disrupting Global Supply Chains

Latest update on 6 March, 2024 by Maya Wong – Marketing Analyst at FreightAmigo

The Red Sea crisis is still affecting the international shipping market, causing significant challenges to global logistics and supply chains. Container shipping costs from Korea to Europe rose more than 70% in January amid escalating tensions in the Red Sea. Analysts noted that the Red Sea crisis caused delays of at least three weeks for ships, which undoubtedly harmed South Korea’s exports.

The Rubymar, a cargo ship owned by the United Kingdom and flagged in Belize, leaked oil for several days after being attacked while carrying over 41,000 tonnes of fertilizer. This incident marks the first vessel lost since the Houthis began targeting commercial ships in November. According to the US military, the attack by Yemeni Houthi militias caused a 29-kilometer oil slick earlier. Oil spills in these waters could cause severe damage. They could contaminate marine ecosystems, destroy vital coral reefs, and harm already overexploited fish populations. This would add new risks to the Red Sea crisis.

For a better supply chain plan, it is recommended to plan extra lead time and costs for your global supply procurement. FreightAmigo is a full-service, one-stop digital supply chain finance platform that offers solutions to help you respond flexibly to the escalating impact of the Red Sea crisis. Talk to FreightAmigo to see how we can help with your needs.