New Freedom, PA.– January 4, 2024 – Nexterus, a world-class supply chain management and third-party logistics (3PL) services provider, is helping its international clients understand the recent challenges of shipping in the Red Sea due to geopolitical issues. Many container shipping companies are diverting ships from the Red Sea due to recent attacks by Houthi militants. Nexterus will help clients find alternative shipping routes to move their goods.
“The closure of the Red Sea, a vital trade route, initiates a cascade of repercussions with significant implications for the Transpacific trade lane,” says Lisa Flohr, Director of Operations at Nexterus. “As uncertainties unfold, Nexterus will provide opportunities to conquer the ever-evolving landscape of the shipping market.”
The Houthis in Yemen have sworn to attack any ships destined for Israel in the Red Sea. All vessels wanting to use Egypt's Suez Canal to cut between Europe and Asia are in danger zones and rerouting carriers around the Cape of Good Hope in Africa. The diverting of ships from the Red Sea will cause backups at other ports, shortages of vessels not in the right location, and 10 – 14 extra days to voyage times.
Impact on Westbound Routes
Impact on the Eastern United States
Indirect Effects and Global Shipping Dynamics
Additional Challenges for the Eastern United States
Seizing Opportunities Amid Uncertainties
“This is a monitor, update type of situation, and Nexterus will stay up on the current events and work with and update our clients continuously to help them move their goods,” adds Flohr. "The only alternative route would be rail from the West Coast as air is too cost prohibitive. There will be port delays in the West Coast region again, which will back up the rail. Then, we are going into the winter months, further delaying rail traffic due to weather. This is the 'perfect storm' in ocean shipping, and the steamship lines have the upper hand again. We already hear in the marketplace that steamship lines have added many GRIs and re-instated a peak season surcharge before Chinese New Year.”
About Nexterus
Nexterus solves urgent and complex supply chain issues, applying expertise and technology to manage and optimize global supply chains. As America's oldest private, non-asset-based, 3PL, Nexterus helps small & medium-sized companies better compete.
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