Global Mobility News Alert – Maritime Freight Rates Increase Due to Red Sea Regional Conflict

Crisis in the Red Sea Continues to Impact Maritime Freight Transport
A large cargo ship sails around the Red Sea due to regional conflict
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As a result of the ongoing conflict in the Red Sea region, there has unfortunately been a substantial rise in maritime freight rates—nearly doubling or tripling in some cases. Key maritime companies like Maersk, Hapag-Lloyd, CMA CGM, and others have halted operations through the Red Sea as security risks continue to be at considerably dangerous levels.

Consequently, vessels unable to travel through the Red Sea must instead navigate around the southern tip of Africa, bypassing the Suez Canal. Although a safer route, this alternative has resulted in extended transit times for cargo shipments linking Europe, Asia, and the Middle East. Moreover, the increased distance and elevated fuel consumption associated with circumnavigating Africa have inflated transportation freight rates. Therefore, we are advising customers with re-routed sea shipments to prepare for significant delays and additional port storage, demurrage, and various other charges that may be assessed.

Your Arpin Service team is aware of all shipments impacted by the ongoing regional Red Sea conflict and will ensure appropriate parties are informed of any potential service disruption. Moreover, our staff are diligently working with our partners to determine the most cost-effective mode(s) of transport and investigating alternative shipping routes for new bookings placed within the Arpin system.  

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