Mitigating Suez Canal Trade Disruptions in 2024
January 18, 2024 - What you should know about the situation occurring in the Suez Canal and how your business can stay prepared.
How Has Conflict Impacted the Suez Canal?
In recent weeks, ocean vessels entering the Red Sea in route to the Suez Canal have been the target of missile, drone and small vessel attacks by the Yemen-based Houthi Militia. Most carriers are avoiding the Red Sea to protect both their employees and their assets. These attacks are disrupting an already fragile global supply chain, particularly for shipments from Asia and the Indian Subcontinent to Europe and the US East and Gulf Coasts.
The longer routing around the Cape of Good Hope on the southern tip of Africa poses many challenges:
- Shipping delays/ Significantly longer transit times
- Vessel schedules are disrupted
- Space tightening and equipment shortage
- Higher costs for carriers and shippers
UPS Supply Chain Solutions is here to help. Our broad portfolio of freight and logistics services allows customers to navigate disruption seamlessly. A single point of contact will help develop a solution specific to your supply chain - All with End-to-End Visibility that gives you peace of mind.
Best Shipping Practices for Suez Canal Challenges
- Act intentionally and don't panic. Whenever possible, plan early and remain flexible. While it's easier said than done, allocating extra time and remaining flexible when booking your shipments can help you stay prepared when unplanned situations like this arise.
- Identify Urgent Shipments and Utilize Alternative Shipping Modes. Some products in your shipment may require faster transit times than others. If that's the case, consider separating your urgent goods and utilizing air freight to move them in a timelier manner.
- Leverage the UPS Forwarding Hub. Our one-stop self-service portal allows you to quote, book and track your air and ocean shipments.
- Have a Contingency Plan. Shipments could be delayed or disrupted and having a contingency plan is important to ensure business continuity.
- Contact Us. Communicate regularly with your UPS Sales Professional and leverage the UPS® Portfolio of services. We can provide additional guidance to help keep your shipments moving. You can stay updated by reading our service alerts.
Alternative UPS Shipping Solutions
UPS offers a broad global portfolio of options to help you navigate rough seas. International Air Freight, Sea-Air, FCL Rail, and UPS Preferred® LCL services help get your shipments where they need to be as efficiently as possible.
International Air Freight
From urgent, next-flight-out service to door-to-door service within 1-5 business days, we've got trusted air freight options for your business.
UPS Preferred® LCL
Accelerated delivery that combines ocean service from Asia and Europe with our truck network in the US, Canada and Mexico.
UPS Preferred® Sea/Air
Combine ocean and air freight to cross the worlds longest trade routes with service throughout the Americas and Europe.