Open main menu
Visit Website
Sign Up

Houthis Expected to Persist as Challenge for Shippers in 2024

The alterations in worldwide shipping routes prompted by Houthi militia assaults on merchant ships have resulted in the redirection of USD 80 billion (EUR 73 billion) worth of cargo from the Red Sea and the Suez Canal. These waterways typically accommodate approximately 12 percent of global commercial maritime freight traffic.

TradoublesTradoubles

•

•

Houthis Expected to Persist as Challenge for Shippers in 2024
Do not index
Do not index
On March 3rd, a British cargo vessel transporting fertilizer was sunk following an attack by the Houthis, while on March 4th, three communications cables were severed in Yemen-controlled waters.
Looking ahead, Glenn Riggs, Chief Shipping Officer at Odyssey Logistics, anticipates that the Houthis will persist as a significant challenge for shippers throughout 2024. Riggs warns that beyond causing delays, these disruptions could lead to spikes in goods inflation, potentially increasing by up to 2 percent due to the raids. Despite U.S. and U.K. military actions against the Houthis, piracy activities show no signs of abating, prompting supply chain professionals to closely monitor the situation in the Red Sea and its associated instabilities.
Riggs identifies additional threats to the global shipping trade, including low water levels limiting usage of the Panama Canal and the looming threat of a strike by the 70,000 dockworkers in the U.S. International Longshoremen’s Association (ILA). The timing of the ILA strike, scheduled shortly before the U.S. presidential election, may exacerbate supply chain instability.
To navigate these challenges, Riggs recommends diversification as a survival strategy for companies reliant on international shipping, emphasizing the importance of flexibility in risk management approaches.
According to Container xChange, a shipping industry analytics firm, rates are projected to decline by approximately 30 percent between February and April, following the typical post-holiday season drop.
In February, shipping prices remained steady in North America, declined by 5 to 7 percent in Europe, increased by 10 percent in Northern Asia, rose by 7 percent in Oceania, and grew by 2.5 percent in Southeast Asia, as reported by Container xChange CEO Christian Roeloffs. Roeloffs notes that March marks the beginning of the contract season for many shipping companies, influencing shipping rates and capacity utilization. While March experiences increased demand compared to the post-Chinese New Year period, it is not as robust as other peak seasons.
Consumer concerns about prices, geopolitical risks, and uncertainty regarding interest rates are expected to continue impacting consumer goods markets in the near term.
Tradoubles

Written by

Tradoubles

Tradoubles is a cross-border seafoods marketplace. We help you source the best seafood suppliers from asian countries.

    Related posts

    Paul Stephenson Resigns from John West as Shawn Oliver Departs Giant Eagle for SugiyoPaul Stephenson Resigns from John West as Shawn Oliver Departs Giant Eagle for Sugiyo
    TradoublesTradoubles

    /

    Paul Stephenson Resigns from John West as Shawn Oliver Departs Giant Eagle for Sugiyo

    Paul Stephenson, who served as the managing director of the U.K.-based seafood company John West owned by Thai Union, has resigned from his position. Stephenson's departure follows closely on the heels of John West's announcement of a significant profit decline of approximately 78 percent in its fiscal year 2022. This decline ensued after the company implemented price increases on several of its products. Stephenson, who joined the company in May 2020, made his exit amid these challenging circumstances.

    Westlake Seafood of Washington Faces Felony Charges for Failing to Report Dungeness Crab and Sea Urchin PurchasesWestlake Seafood of Washington Faces Felony Charges for Failing to Report Dungeness Crab and Sea Urchin Purchases
    TradoublesTradoubles

    /

    Westlake Seafood of Washington Faces Felony Charges for Failing to Report Dungeness Crab and Sea Urchin Purchases

    Westlake Seafood, headquartered in Tacoma, Washington, U.S.A., is facing four felony charges after purportedly neglecting to report purchases of Dungeness crab and sea urchin to the Washington Department of Fish and Wildlife (WDFW).

    Linde to Showcase IQF Innovations at Seafood Processing North America in MarchLinde to Showcase IQF Innovations at Seafood Processing North America in March
    TradoublesTradoubles

    /

    Linde to Showcase IQF Innovations at Seafood Processing North America in March

    With an unwavering commitment, Linde continues its dedication to advancing cryogenic freezing solutions for the seafood sector. These pioneering efforts will be showcased at Seafood Processing North America, slated to take place from Sunday, March 10th to Tuesday, March 12th, 2024, at the Boston Convention and Exhibition Center in Boston, Massachusetts, USA.

    India and Brazil Criticized for Impeding Progress in WTO Talks with Firm StancesIndia and Brazil Criticized for Impeding Progress in WTO Talks with Firm Stances
    TradoublesTradoubles

    /

    India and Brazil Criticized for Impeding Progress in WTO Talks with Firm Stances

    The adoption of 'radical positions' by several nations, notably India and Brazil, is posing a threat to the potential agreement within the World Trade Organization aimed at addressing subsidies contributing to overfishing and overcapacity in domestic fleets, as stated by Daniel Voces, Managing Director of Europêche, representing the fishing interests of the European Union.

    High Liner Acquires Stake in Norcod Through Recent Private PlacementHigh Liner Acquires Stake in Norcod Through Recent Private Placement
    TradoublesTradoubles

    /

    High Liner Acquires Stake in Norcod Through Recent Private Placement

    High Liner Foods, headquartered in Lunenburg, Nova Scotia, Canada, has injected USD 5 million (EUR 4.6 million) into Norcod as a component of the Norwegian cod farming company's recent private placement totaling NOK 170 million (USD 16 million, EUR 14.8 million).

    Official Query: What's Behind the Downturn in Seafood Sales?Official Query: What's Behind the Downturn in Seafood Sales?
    TradoublesTradoubles

    /

    Official Query: What's Behind the Downturn in Seafood Sales?

    Listen to Ken Salzinger, founder of Kenmar Sales and Consulting and author of the "Ken's Catch" newsletter, as he delves into the topic of declining seafood sales. In this segment, Salzinger addresses various theories proposed by pundits, including the impact of inflation, seafood prices compared to other proteins, and concerns about the safety of imported seafood. However, Salzinger offers his own perspective on these theories, suggesting that they may not accurately explain the decline in seafood sales.