Risk Mitigation, Vessel Suspension, Booking Halt, Route Diversion, Additional Charges! Top-tier Carriers Release Latest Emergency Advisories
As the security situation around the Strait of Hormuz and the Red Sea has deteriorated sharply, and multiple attacks on ships and port restrictions have occurred, the world's major liner companies have rapidly upgraded their risk response levels. From ships taking heed, suspending bookings, stopping transit, detouring around the Cape of Good Hope, and then imposing emergency surcharges, the Middle East shipping chain is entering a state of high contraction. Many leading shipping companies, including MSC, Maersk, CMA CGM, COSCO Shipping, Hapag-Lloyd, and ONE, have issued emergency notices to clarify phased operation adjustment plans.
1. Major shipping companies have stopped booking space
Against the background of rapidly rising risks, some shipping companies took the lead in pressing the "booking pause button." According to Loadstar, CMA CGM, COSCO Shipping Lines, HMM, Mediterranean Shipping Company, Hapag-Lloyd, ONE, Orient Overseas, PIL and Wanhai Shipping have suspended Middle East cargo bookings. COSCO Shipping, MSC and PIL have suspended "high-risk" routes and Strait of Hormuz routes, and Evergreen Shipping has adjusted transit ships.
ONE (Ocean Network Shipping) announced on March 2 that it will suspend accepting new bookings to and from the Persian Gulf region from now on until further notice. The company stated that the situation in the Middle East is changing rapidly and preventive measures must be taken to ensure the safety of seafarers, ships, landside personnel and customers' cargo. For cargo that is in transit or has been arranged, we will evaluate it on a voyage-by-voyage basis and update the plan to customers in a timely manner.
MSC (Mediterranean Shipping Lines) issued an emergency notice on March 1, suspending new bookings globally to the Middle East. At the same time, all ships located in the bay waters or heading to the area are instructed to go to designated safe and sheltered waters to stand by. MSC emphasized that this move is aimed at responding to the increased navigation risks in the Strait of Hormuz and Bab el-Mandab, and will resume bookings after the situation eases.
CMA CGM announced that it will immediately stop bookings of reefers and dangerous goods/dangerous goods to and from 13 Middle East and surrounding countries, including Iraq, Bahrain, Kuwait, Qatar, Oman, the United Arab Emirates, Saudi Arabia, Jordan, Egypt (Ain Sokhna Port), Djibouti, Sudan and Eritrea, until further notice. The company pointed out that this move is to ensure the integrity of cold chain goods and the safety of equipment and overall operations.
Hapag-Lloyd has also suspended bookings of refrigerated containers to and from the Arabian Gulf and Persian Gulf and imposed restrictions on intra-Middle East trade. The countries involved include Iraq, Bahrain, Kuwait, Qatar, the United Arab Emirates, Saudi Arabia’s Eastern Province and Oman.
Wanhai Shipping announced on the 2nd that it would suspend the booking of all cargo to the Middle East. The recovery time will be notified to customers separately depending on changes in the regional situation. Wanhai currently operates three routes in the Middle East market: Pakistan/Saudi Express (PSX), China/Singapore/Saudi Arabia (AM1) and India/Middle East route (IM1). Affected by the escalation of the conflict between the United States and Iran, some Middle East ports have suspended operations, the volume of cargo waiting to be transshipped at regional transit ports has increased, and the pressure on supply chain operations has increased. If the conflict continues or the scope of its impact expands, the risk of congestion may spill over to ports in India, Pakistan and Asia, resulting in a tight supply of space. At the same time, terminal congestion, reduced shipping capacity, and rising war risks and fuel costs are expected to push up overall ocean freight rates.
Overall, booking restrictions have been upgraded from local risk control to regional preventive measures.
2. Navigation in the Red Sea and Strait of Hormuz is suspended or shifted to risk aversion mode
In addition to booking space, shipping companies have simultaneously adopted risk avoidance and detour measures at the route level.
COSCO Shipping Lines issued a service notice stating that ships that have entered the Persian Gulf will go to safe waters to stay or anchor in safe waters after completing their original port operations; ships heading towards the Persian Gulf will slow down or transfer to sheltered anchorages based on actual conditions, and alternative unloading port plans will be evaluated.
CMA CGM confirmed that all ships operating in the Gulf area and sailing to this area have been instructed to go to designated sea areas to avoid danger; at the same time, passage of the Suez Canal has been suspended, and relevant ships have been rerouted around the Cape of Good Hope. If there are alternative unloading port arrangements, customers will be notified separately.
Maersk has suspended ships from passing through the Strait of Hormuz, and its ME11 (Middle East-India to the Mediterranean) and MECL (Middle East-India to the East Coast of the United States) routes have been diverted to the Cape of Good Hope. Ships that have docked at Jebel Ali Port are on standby.
Hapag-Lloyd announced the suspension of traffic through the Strait of Hormuz. In addition, Hapag-Lloyd issued a notice saying that the security situation in the Arabian Gulf and surrounding areas continues to be tense, which has affected ship navigation and port operations in the region, and cargo transportation to and from multiple Middle Eastern countries may be affected. Affected countries include: United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Bahrain, Iraq and Oman.
The company emphasizes that the safety of crew, ship, cargo and overall operations is always its top priority. Under the current environment, voyage arrangements may be adjusted, and port berthing time and overall transportation time may be extended. Some ships may need to stay in safe waters until conditions are met to continue sailing. No alternative port of discharge has been designated at this time and therefore there is uncertainty regarding delivery times.
In terms of booking and receiving goods, Hapag-Lloyd said it will dynamically adjust its space acceptance according to the development of the situation. Currently, booking restrictions have been implemented for refrigerated cargo and intra-Middle East trade. Refrigerated cargo exported from India to the affected areas will not be loaded for the time being. Other cargo categories are currently operating, but may be adjusted at any time.
In addition, the published War Risk Surcharge (WRS) will still apply to all bookings. Due to operational restrictions, some ports (including Jeddah Port) may impose additional surcharges. The company reminds customers to carefully evaluate shipment arrangements based on the current situation and pay attention to further restrictive measures that may be introduced in a short period of time.
MSC also confirmed that all ships in the bay and heading to the area have entered safe havens, and will evaluate whether to divert to alternative ports based on the development of the situation.
It can be seen that even if some waters have not yet been "closed" in the legal sense, commercial shipping decisions have clearly shifted to active avoidance, and circumnavigating Africa has become a real option.
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