The Conflict in the Red Sea and Its effects on International Transportation.

The conflict in the Red Sea has triggered a series of crucial logistical challenges for transportation between Europe and Asia, directly impacting the efficiency and security of the supply chain.

In recent weeks, a rebel group known as the "Houthis," originating from Yemen, has carried out more than 27 attacks against cargo ships in the Red Sea as acts of revenge against Israel for its recent military activities in Gaza.

This situation has led more than 18 shipping companies to divert their routes to South Africa to reduce the risk of attacks, resulting in an estimated increase of 6,000 km compared to the usual route.

This conflict poses a series of problems for shipments from SCT STRAW to Asian ports such as Yantian or Chittagong:

• The cost of freight hiring has increased by more than 100% from the usual price due to emergency surcharges.
• The quantity of in-transit freights has decreased by almost 50%, causing a reduced availability of dates.
• In case the freight needs to be diverted, circumventing South Africa instead of crossing the Suez Canal, there is a minimum increase of 10-15 days in the transportation period.

This conflict presents a multitude of challenges and concerns for current and future shipments of goods. From SCT - Straw, we express our wish for a secure service for all cargo transporters on these routes daily and a prompt resolution to this dispute that has led to violence and terror.