The clearing of the channel has begun. The containers are unloaded from the Dalia using a floating crane. Huge crane ships are standing by in Baltimore to direct the work.

It was announced this week that a 35-foot channel will be available by the end of April. This would allow ships of a certain size to call at the terminals in the Port of Baltimore. However, the largest container ships require a draft of 50 feet and the goal is to achieve this by the end of May.

RO/RO ships may be able to transit as long as they are not too heavily loaded.

Shipping companies are still not accepting bookings to or from Baltimore until the port is officially open. Trucking capacity in Norfolk is becoming very tight for containers that need to be trucked to Baltimore. Breakbulk/Mafi freight is suffering from delays in loading in Norfolk as appointments at the terminal are not readily available.

The port of New York is apparently coping with the additional container volume with minimal delay.  This could change if more ships are diverted there. Both New York and Norfolk could start experiencing congestion surcharges in the near future.

The warehouses in Norfolk, where containers are unloaded, have reached their capacity limits. We are in close contact with our partners there.  There does not seem to be the same capacity problem in New York. But that can change at any time.

Efforts are currently underway to re-float the Dalia vessel, which struck the Francis Scott Key Bridge, causing its collapse and closure of the shipping channel. The company “Resolve Marine”, known for its work in major salvage operations, is mobilizing to remove the ship.

Re-opening the Port of Baltimore is a top priority for local, state, and federal authorities due to its critical role in the economy. Plans are under way to remove debris blocking the shipping channel and it is estimated that this will take at least a month.

Despite the closure, import shipments can be picked up, but exports are halted. Ocean carriers are diverting cargo to other ports, with New York receiving the largest share. Trucking capacity is secured to handle diverted containers.

Our team remains committed to managing shipments affected by the closure.

The Francis Scott Key Bridge that spans the Patapsco River collapsed overnight after being struck by a containership operated by Maersk Line. The collapse occurred after the container ship “Dali” lost power early Tuesday and crashed into the bridge, sending people and vehicles into the frigid Patapsco River.

Tragically there were cars and workers on the bridge at the time of the accident. Rescuers are working diligently to find anyone that is in the water.

Right now, State and Federal officials are focused on search and rescue. At this time, The Port of Baltimore is closed to marine traffic. The shipping channel is completely blocked. The marine terminals are currently open on the land side and trucks are being processed in and out of the terminal.

We are monitoring the situation closely. Shipments on the water will be diverted by the steamship lines. We anticipate that New York, Philadelphia, and Norfolk will be the ports where most Baltimore destined container cargo will go. The ocean carriers will make the final decision on where they will discharge Baltimore destined containers.

All export shipments will be rerouted to other ports.

With the recent security incidents in mind, Hapag-Llyod has decided to continue to avoid the Red Sea route in the interest of the safety of our crew and their cargo. They have updated their schedules to reflect the Cape of Good Hope transit at the last port of departure in the region. This will allow Hapag to make the most accurate decisions based on the latest information.

Hapag will introduce a shuttle service connecting Red Sea cargo via Jeddah, SA. This will enable them to connect the Red Sea market with Europe, North Americ and Latin America.

Tanger, MA – Damietta, EG – Jeddah, SA – Tanger, MA

• A feeder service has been arranged whereby Aqaba, JO and Port Sudan, SD are routed via Jeddah, SA.
• They plan to maintain a 10-day frequency for this service.

We understand that this doesn’t cover all Red Sea cargo, so we will continue to provide updates as we come up with more solutions.
We will keep you informed of any developments and changes as they occur.

Starting in 2024, all large vessels berthed on European shores will be subject to the ETS (carbon tax). The estimated carbon tax rates are attached (ETS EUROPE & ETS MEDITERRANEAN).

https://www.reuters.com/business/cop/eu-strikes-deal-make-ships-pay-their-carbon-emissions-2022-11-30/

This year, the Panama Canal faces a more intense dry season than usual.

While the dry season typically lasts from December to May, this time the reduced capacity due to the dry spell will force ships traveling between the Asia-Pacific and the U.S. East Coast to detour via the Suez Canal.

As mentioned earlier, when the Suez Canal is not feasible, the Cape of Good Hope becomes the last lifeline between the Asia-Pacific and the U.S. East Coast.

The journey to the U.S. East Coast is also significantly longer than before. Although the nature of natural disasters suggests a predictable recovery time for capacity, the instability will not be as pronounced as the impact on the Europe route. Still, attention should be paid to the instability of schedules and prices due to the short-term decline in capacity.

Panama dry season report:
https://fortune.com/2023/12/04/panama-canal-dry-backed-up-brutal-drought-shippers-paying-4m-jump-queue/

We believe that since December 14, you have been receiving news about the Houthi movement in Yemen attacking unspecified commercial ships.
Following this, major shipping companies announced the suspension of operations in the Suez Canal.
Currently, shipping companies estimate an increase of 8 to 14 days in the transit time from Asia to Europe and the Mediterranean.

Despite Maersk’s announcement three days ago (25/12/2023) that they would respond to the U.S. Department of Defense’s Prosperity Guardian plan to resume Suez Canal shipping operations, major shipping companies still have no plans to resume operations. According to the information I have, including confirmation from myself, MSK (Maersk) is still primarily using the Cape of Good Hope route. Reservations for the Europe route are fully booked until the end of January 2024, and until operations resume, the situation will likely be characterized by no availability at reservation times.

Short-term impact: Scarcity of available slots on the Europe route.

Long-term impact: Congestion on the Europe route affecting transoceanic routes, leading to container shortages spreading to transoceanic routes and compressing shipping supply in the Asia-Pacific region.

First Houthi attack exposure:

https://abcnews.go.com/Business/wireStory/liberian-flagged-cargo-ship-hit-projectile-rebel-controlled-105682537

MSK claims to resume Suez Canal route:

https://www.scmp.com/news/world/middle-east/article/3246186/israel-gaza-war-maersk-resume-red-sea-shipping-operations-under-us-led-military-protection-against

Shipping costs rise by nearly 50% in a week and could go up further amid Red Sea attacks

https://news.sky.com/story/shipping-costs-rise-by-nearly-50-in-a-week-amid-red-sea-attacks-13034741

In the light of the ongoing critical situation in the Southern Red Sea carriers are avoiding passage through the Red Sea and Suez Canal, instead routing vessels around Cape of Good Hope.

The change in routing leads to additional costs as announced by various carriers (such as Contingency Surcharge, Contingency Adjustment Contribution, Operational Recovery Surcharge, Emergency Peak Season Surcharge etc).

According to chapter7 of the SACO Shipping Line B/L terms and conditions, these surcharges will apply latest for departures from ETS 01.01.2024, for some lanes application date was 20.12.2023 including floating cargo.

Final amounts will be published as soon as possible.
While we are closely monitoring the situation and committed to providing timely updates as new information emerges, we advise shippers to expect potential delays and further disruptions as the situation evolves.

Last Friday Hapag-Lloyd experienced an attack on our vessel “Al Jasrah” in the Red Sea. Fortunately, the crew was not injured, and the vessel could continue its journey. As we see it today, the situation around the Suez Canal and the Red Sea is unsafe and the risks for our crews onboard are unacceptable.

Since December 15th four of the world’s five largest container-shipping companies, CMA CGM, Hapag-Lloyd, Maersk and MSC, have paused or suspended their services in the Red Sea, until further notice. The four companies that have now suspended operations in the area comprise four of the top five in the world – and shipping experts say the decisions are going to be costly They will reassess the situation in the Red Sea regularly and reinstate their services through the Suez Canal when the situation in the area is deemed safe and secure for their ships and crews. At present, we must expect a longer transit time.

Just got into summer season and rainy season never showed up at all, for this reason our authorities at this moment are allowing the transit of 22 vessels per day instead of the regular 36 transits per day.

They can wait in line for days or weeks, as low water levels limit the number of ships passing through the 50-mile waterway. They can pay millions of dollars to jump ahead in the queue, if a ship with a booked reservation drops out. Or they can sail an entire continent out of the way, sending their ships around the southern tips of Africa and South America, or through the busy Suez Canal.

Shipping companies are trying to pass along the extra costs to their customers. Hapag-Lloyd AG, and Maersk all have announced new Panama-related surcharges in recent months