Red Sea Crisis Spotlights Interstate International’s Transparent Shipping

Just as global supply chain problems seemed to be easing, rising tensions in the Middle East are threatening to once again throw international shipping into chaos. In recent weeks, militants from Yemen have attacked commercial shipping vessels creating a Red Sea crisis, which connects to the Suez Canal, a vital global trade artery.

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Just as global supply chain problems seemed to be easing, rising tensions in the Middle East are threatening to once again throw international shipping into chaos. In recent weeks, militants from Yemen have attacked commercial shipping vessels in the Red Sea, which connects to the Suez Canal, a vital global trade artery. These attacks have caused what is now known as the Red Sea Crisis.

As a result of these attacks, several major container shipping lines have stopped sailing through the Red Sea. Approximately 500 ships scrapped their original plans to sail through the Red Sea and have instead taken the extra 2-3 weeks to sail around the southern tip of Africa. According to Bloomberg Intelligence diverting around Africa adds about 40% to the distance of the voyage. For shipping companies, this means delays, higher costs, key components late in arriving. Air freight offers a limited alternative, but now costs are soaring there as well.

This is troubling news for importers and exporters, who are looking for some degree of certainty in a very uncertain moment for international shipping. One way to combat this uncertainty is to partner with a company like Interstate International. Interstate seamlessly merges our transportation capabilities with an extensive network of partners to craft a comprehensive shipping strategy for your cargo.

Interstate already has measures in place to help mitigate the impact of the Red Sea crisis, including the following.

Proactive exploration of alternate ocean routes and carriers to avoid the Red Sea

There is much to consider at the moment if you’re considering shipping through the Suez Canal. Not only are there considerable risks to ships and cargo, but also sailors demanding double pay and insurance rates skyrocketing for those taking a Red Sea passage. Interstate has built a worldwide network of partners that will grant you access to the most reliable and cost-effective shipping options, whatever they may be.

Identification of any cost implications well in advance of shipping.

Higher costs might be unavoidable at this time, but that doesn’t mean you should be burdened with sudden, unexpected cost surges. We identify potential cost increases to afford you time to properly budget.

Proper and clear communication of transit timelines

This allows you to properly plan content inclusion of your shipment in accordance with your needs.

Active and informative communications throughout the course of international transit

This ensures updates are received in real time to give you a better understanding of your cargo’s movement as it happens.

Conclusion

The key to Interstate International’s successful approach to mitigating shipping issues is not just transparency, but true partnership with our clients. If you decide to ship with Interstate, we give you a seat at the table. You’ll get to know the associate companies who work with us to move your cargo around the globe. You’ll have open lines of communication throughout the supply chain. And you’ll learn that Interstate is the best because we work with the best. Unfortunately, the crisis in the Red Sea probably won’t be the last geopolitical event to hamper international trade. Only by working with the right partners and fostering key relationships around the globe can we ensure that overseas shipping will remain economically viable.