This week, federal agencies are emphasizing the importance of sanctions compliance for companies involved in global transport, amid worsening Red Sea conflict leading to more ship detours around Africa. As a result, ocean freight rates are surging, and there’s a possibility of air freight rates spiking due to maritime trade delays. Container lines are also under pressure, renting more ships to cope with the crisis, while an atypical increase in diesel prices is observed, though a lasting rise remains uncertain. These developments highlight the critical need for vigilance and adaptability among shippers facing these evolving challenges. Read the full articles below for further details.
Weekly Freight Report: January 19, 2024
January 19th, 2024
Forwarders, Brokers, Others Responsible for Ensuring Sanctions Compliance, Feds Say
Federal agencies stress companies moving cargo must prevent misuse for evading U.S. laws, requiring global transport entities to assess risks, implement controls, and verify cargo authenticity.
Red Sea Conflict Worsens, Forcing More Ship Detours Around Africa
Houthi ship attacks continue amid ongoing coalition air strikes in Yemen. The escalating maritime tensions may impact global shipping dynamics in the near future.
Ocean Freight Rates Surge Further as Red Sea Crisis Develops
Shipping experts warn that additional rate increases, capacity shortages and delays are on the way. Ocean rates continue to rise after weeks of Red Sea diversion from Houthi-led attacks on vessels.
Air Freight Rates Could Spike as Red Sea Attacks Disrupt Shipments Via Sea
The delays to maritime trade may prompt some retailers to switch to air freight, as companies who normally have goods shipped by sea seek to ensure faster delivery. Air freight can slash delivery times to just a few days compared to weeks taken by ocean carriers.
Container Lines ‘Scramble’ To Rent More Ships Amid Red Sea Crisis
Harpex charter-rate index up 28% vs. pre-COVID levels Security risks and Red Sea diversions are causing increased container freight rates and rental costs for shipping lines.
Benchmark Diesel Price Makes Atypical Move Upward
Diesel prices rose slightly, but potential for a lasting increase is doubtful as oil futures continue to fall, despite recent disruptions in shipping through the Red Sea.
