In a ripple effect of the ongoing Red Sea crisis, goods destined for Piraeus port are experiencing significant delays, with more than 200,000 containers stranded en route. The Athens Chamber of Tradesmen President, Yannis Chatzitheodosiou, highlighted the gravity of the situation, revealing that the crisis is preventing ships from traversing the Red Sea, resulting in delays ranging from 10 to 20 days for products to reach the port of Piraeus.
Chatzitheodosiou further disclosed that the cost of transporting each container, typically EUR1,800, has skyrocketed to EUR6,500 due to the extended distance covered via alternative routes. The diversion from Asia through the Cape of Good Hope, prompted by the crisis, is particularly impacting Mediterranean ports, tacking on an additional two weeks to the voyage.
However, the challenges extend beyond the Red Sea crisis. Factors such as the scarcity of rainfall in the Gulf of Panama are compounding shipping conditions, limiting the daily passage of ships from 42 to fewer than 24. This, coupled with vessels diverting to the US, exacerbates the strain on global trade.
Chatzitheodosiou cautioned, “As long as the war continues and ships are diverted for aid, there will be a shortage, leading to inconvenience and increased costs. The demand for ships will outweigh the supply, impacting sectors heavily reliant on imports, such as electronics, mobile phones, and clothing from the Far East.”
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As the global shipping landscape faces unprecedented disruptions, Top Most Freight Solutions remains steadfast in providing reliable and innovative logistics solutions. Get in touch, to know how can we further assist your company in navigating these challenges and securing the smooth transit of your cargo!
Credit: Seatrade Maritime